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Orlov [11]
2 years ago
6

If a bond is purchased at a premium, the yield to maturity is A) the same as the current yield. B) lower than the nominal yield.

C) higher than the nominal yield. D) higher than the current yield.
Business
1 answer:
babymother [125]2 years ago
7 0

If a bond is purchased at a premium, the yield to maturity is higher than

the nominal yield.

<h3>What is Nominal yield?</h3>

This is defined as the return of a bond is determined by the percentage of

the face value while Current yield deals with current market value.

Yield to maturity is the total return anticipated on a bond if the bond is

held until it matures and is usually higher than the nominal yield.

Read more about Nominal yield here brainly.com/question/24325177

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If total liabilities decreased by $15,000 and stockholders' equity increased by $10,000 during a period of time, then total asse
scoray [572]

Answer:

The total assets must change by B) $5,000 decrease

Explanation:

hi, remember that:

Assets=Liabilities+Equity

If liabilities decrease by $15,000 and equity increases by $10,000...

Assets=(Liabilities-15,000)+(Equity+10,000)

Assets=Liabilities+Equity-5,000

Therefore, to balance this equation, we have to substract -$5,000 from the assets, therefore, the assets decrease by 5,000, which is B)

Best of luck.

4 0
3 years ago
Drum buffers are:
maks197457 [2]

Answer: Extra safety that is applied to a project immediately before the use of the constrained resource.(D)

Explanation:

Drum buffer can be explained as period of time that is used to safeguard the drum resource from the problems that occur from the drum operation.

The aim of the drum buffer effect is to provide a recheck of the work in order not to deviate from the real aim of the project. The buffer makes up for the process variation, and makes the project stable as it gives extra safety which is applied mmediately before using constrained resource.

6 0
3 years ago
Hester operates a hand car wash service and charges customers $10 per car wash. Based on her knowledge of operations, the 100th
kvv77 [185]

Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.

Explanation:

In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.

At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.

4 0
3 years ago
The following transactions are July 2014 activities of Craig�s Bowling, Inc., which operates several bowling centers (for games
ololo11 [35]

Answer:

Explanation:

The journal entries are shown below:

a. Cash A/c Dr $15,000

         To Games revenue A/c   $15,000

(Being cash collected)

b. Cash A/c Dr $3,000

   Accounts receivable A/c Dr $5,000

                   To Sales revenue $8,000

(Being cash received for selling of equipment)

c. Cash A/c Dr $4,000

      To Account receivable  $4,000

(Being cash received for merchandise sold by the company)

d. Cash A/c Dr $2,500

       To Unearned revenue A/c $2,500

(Being deposit received for the upcoming fall season)

5 0
2 years ago
Which of the following is true about duration and modified duration?
My name is Ann [436]

Answer:

The truth about Macaulay Duration and Modified Duration is:

d. All are true.

Explanation:

Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.

On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.

4 0
3 years ago
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