Abc company is in the process of issuing bonds. The bonds have a stated interest rate of 6%, which is 2% above the current market rate. What effect will the two interest rates have on the bond issue price?.

Answers

Answer 1

Answer:

The issue price will be above the bond's face value.

Explanation:


Related Questions

Why is cvp analysis more difficult when using absorption costing than when using variable costing?.

Answers

CVP analysis is more difficult because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

What is a CVP analysis?

This is an analysis that find out how changes in the firm's variable and fixed costs affect the firm's profit.

Hence, the analysis is difficult when using absorption costing than when using variable costing because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

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3. What challenges do you anticipate in implementing some of the above steps? Explain.

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In implementing some of your steps, anticipate the challenges as they are bound to e related to your specific goal.

What are challenges?

Generally, challenges are simply a competitive situation to determine who is superior in a specific field.

In conclusion, in carrying out set goals, missions, or said steps or series of activities we tend to meet challenges, and these challenges are anticipated by the nature of activity.

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On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $97,800; Allowance for Doubtful Accounts, credit balance of $1,021. What amount should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible

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The amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913

What is bad debts expenses?

Bad debt are debts owned to a business which cannot be recovered. Here, the customer has chosen not to pay this amount.

Computation of amount to be debited to Bad Debts Expense:

=  Accounts Receivable, debit balance of $97,800 *  3% of outstanding accounts receivable at the end of the current year

= $97,800 *  3%

= $2,934

Then,

= $2,934 - $1,021

= $1,913

Hence, the amount that should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible is $1,913

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Which item was invented in 1972 by minnesota vikings field-goal kicker fred cox? skateboard nerf football super soaker etch a sketch.

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The answer is the Nerf football.

Iman’s manager, using ________, required him to give up his company car because he had missed sales goals for four consecutive quarters.

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The policy of Iman's manager to require him to give up his company car because of his failure to meet sales goals was punishment.

What is punishment?

When a person is punished, a positive benefit is taken away from them in order to inspire them to do better.

In this case, Iman's car was taken away from him by his manager to encourage him to meet up with sales goals that he had been failing to meet.

In conclusion, this is punishment.

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If you paid $900 for a $1000 25-year bond that pays a 10% annual interest payment, the bond's yield is Multiple choice question. 11.1% 5.3% 10% 9%

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The bond's yield given the amount paid for the bond, the face value and the annual interest payment is 11.1%.

What is the bond yield?

A bond's yield is the interest rate that equates the cost of the bond to the cash inflows from the bond.

Bond yield can be determined using a financial calculator.

Cash flow in year 0 = -900Cash flow each year from year 1 to 25 = 10% x 1000 = 100 Cash flow in year 25 = 1000

Bond yield = 11.1%

When developing an advertising campaign, the company first identifies and analyzes the target audience then

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Answer: defines the advertising objectives

Explanation:

A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.

Answers

A decrease in the discount rate increases bank reserves and increase the money supply if banks respond appropriately to the change in the rate.

What is discount rate?

Dscount rate serves as the rate of interest that the central bank charges on its loans and advances to a commercial bank.

Therefore, when there is increase in discount rate, there will be increase in money supply.

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Before sending a résumé, you should always checked with the employer to see what operating system they use. please select the best answer from the choices provided t f

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Answer:

This is true.

Explanation:

Edg. 2022

Answer:

t

Explanation:

trust

How often should you update the information in your resume

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Answer:

tue answer is twice a year

Assuring consumers that the company follows responsible information practices and that there are consequences for failing to do so is called:

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A notice/awareness is a business ethics term that refers to informing customers that the firm uses responsible information practices.

What is a business code of ethics?

A business ethics code is a collection of governing principles meant to guarantee that a company and its workers operate with honesty, truthfulness, and integrity in all aspects of its daily operations and only participate in activities that contribute to the betterment of the consumers in the society.

A notice/awareness is a business ethics term that refers to informing customers that the firm uses responsible information practices and that there are repercussions for failing to do so.

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When is using a credit card to cover an emergency expense a good idea and won't cost you any interest?

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Answer:

Bottom line. Depending on your personal financial situation, it can be ideal to have both credit cards and cash on hand during emergencies. A credit card can help you redeem rewards while also covering your emergency expenses, but it should only be used if you can pay the balance off in full without incurring interest.

Explanation:

The British government increased the national debt from $75 million to $133 million by borrowing from ________ and British bankers.

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The British government borrowed from the Dutch and British bankers and this increase its national debt from $75 million to $133 million.

What is a national debt?

This means the total amount of all debts owed by the government of a country.

These debt are used to service infrastructure, cater expenditure when there are insufficient revenue to cater for such.

Therefore, the British government borrowed from the Dutch and British bankers.

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The standard overhead applied is based on the ______ level of activity multiplied by the predetermined overhead rate. Multiple choice question.

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The standard overhead applied is based on the actual level of activity multiplied by the predetermined overhead rate.

Based on the following passage, what is the intended effect of President Obama’s immigration reform? (Select all that apply.)

President Obama announced in 2014 that he was going to engineer a legal route to citizenship for all undocumented workers who have not committed a felony. Those workers must pass a background inspection, pay taxes and learn English before their citizenship will be granted.(Select all that apply.)

When all people living in this country are documented, that situation will help secure our borders.
When all people living in this country are documented, that situation will help our economy.
When all people living in this country are documented, that situation will help ensure national security.
When all people living in this country are documented, that situation will drain our health care system.

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The intended effect of President Obama's immigration reform includes the following:

B. When all people living in this country are documented, that situation will help our economy.

C. When all people living in this country are documented, that situation will help ensure national security.

What is the importance of immigration reforms?

Immigration reforms ensure the following:

Drive business creationFuel innovation,Strengthen communitiesBolster the middle classGrow the economyKeep Americans and their families together.

According to President Obama, immigration has

Created new businesses.Shaped the character of the United States.Benefited the country more than others.

Thus, the intended effect of President Obama's immigration reform includes Options B and C.

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Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see: Group of answer choices a decrease the labor force participation rate. a decrease in the unemployment rate. an increase the unemployment rate. no effect on the unemployment rate. no effect on the labor force participation rate.

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Answer:an increase the unemployment rate.

Explanation:Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see: an increase the unemployment rate.

If people who are discouraged and looking for job again will see An increase the unemployment rate Option(c) is correct.

What is Unemployment?

In simple Words unemployment is referred to as that rate in which the people are completely unemployed they are actually not getting the job easily.

People who are looking for job to start once again will get no job and hence it would lead to the increase in the unemployment.

Therefore Option(c) is correct.

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You should check your credit report from each of the three main credit bureaus at least once per year by requesting copies from annualcreditreport. Com.

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It is a good idea and notion to check your credit report from each of the three nationwide credit bureaus at least once a year.

What is the benefit of checking your credit report?

Your credit report history is an important component of information for your entire financial well-being. Checking your credit history as it appears on your credit reports, as well as, credit score ratings may assist you in understanding your present credit situation.

It is critical to review your credit report since your credit scores history is among the elements that may influence your loan conditions, particularly interest rate, and it is critical that the content on your credit reports is true and accurate.

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an account that earns ___ interest will result in a higher annual percentage yield

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Answer:

The annual percentage yield (APY) is paid to a depositor by a financial institution. The percentage is based on the existing amount after a certain period. If the owner of saving account choose not to take out the past interest revenue, the amount would be compounded for future years.

Answer:

The answer is C. Compound

Explanation:

I took the quiz :) your welcome <3

If the Fed wishes to increase the money supply via open market operations, it should _____ Treasury bonds.

Answers

To increase the money supply using the open market operation strategy, the Fed should buy Treasury Bonds.

How can the Fed increase money supply?

Increasing money supply would mean the Fed releasing more currency into the U.S. economy.

This can be done by buying back treasury bonds from the public because the Fed would pay for those bonds with currency which would then float into the economy.

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The range of operations that falls within the capacity of the current level of fixed costs is referred to as the:

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A relevant range means the range of operations that falls within the capacity of the current level of fixed costs.

What is a relevant range?

In manufacturing, this range means the specific activity level that is bounded by a minimum and maximum amount.

In other word, its is also the level of activity that a company is expected to operate within.

Hence, the relevant range is the range of operations that falls within the capacity of the current level of fixed costs.

Therefore, the Option A is correct.

Missing options "a. Relevant range b. Marginal range c. Operating range d. Linear average"

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Carla Vista Co. Ltd. Publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Carla Vista sells 7,800 subscriptions for cash, beginning with the December issue. Carla Vista prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.

1. Prepare the entry in November for the receipt of the subscriptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. ) Date Account Titles and Explanation Debit Credit Nov. E Textbook and Media List of Accounts

2. Prepare the adjusting entry at December 31, 2022, to record subscription revenue in December 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. ) Date Account Titles and Explanation Debit Credit Dec. 31 e Textbook and Media List of Accounts

3. Prepare the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. ) Date Account Titles and Explanation Debit Credit Mar. 31

Answers

The journal entry to record the receipt of the subscriptions for Nov is: Debit Cash $218,400; Credit Unearned subscription revenue  $218,400.

Receipt of subscription

Journal entries

Nov 2022

Debit   Cash  $218,400

($7800×$28)                    

Credit Unearned subscription revenue         $218,400

(To record the receipts of subscription)

Dec 2022

Debit   Unearned subscription revenue    $18,200

Credit Subscription revenue $18,200

($176,400×1/12)      

(To record the revenue earned)

March 2023    

Debit Unearned subscription revenue     $54,600

Credit Subscription revenue  $54,600

($218,400×3/12)    

(To record the revenue earned)

Therefore the entry to record the receipt of the subscriptions for Nov is: Debit   Cash  $218,400; Credit Unearned subscription revenue         $218,400.

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Which of the following illustrates the most economically sound choice for brad? buying both a car and a home leasing both a car and home buying a car and leasing a home leasing a car and buying a home

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Buying both a car and a home best illustrates economics sound choice of brad.

What is a brad?

A brad is a device that have a slight projection that help to fasten paper or object. It is a thin, soft metal, such as shim brass, wihich has a round head and a flat, split shank, which spread wide on pages or as a cotter pin or a split rivet.

They are use to attach shoe moldings and fastened small ornamental parts on furnitures Brads are use to glue wooden parts together.

Therefore, Buying both a car and a home best illustrates economics sound choice of brad.

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Answer: Keep it simple: A    

Explanation:

buying both a car and a home

If bank customers decided as a group to pay off their loans and not take out any new loans, ceteris paribus: Group of answer choices Excess reserves would decrease. The money multiplier would decrease. The money supply would increase. The money supply would decrease.

Answers

The money supply in an economy will decrease if the bank customers decided as a group to pay off their loans and not take out any new loans.

What is a money supply?

In an economy, the money supply refers to the total amount of money that is circulatingb in such economy.

The rate of use of currency, loan instrument, certificates of deposits etc are determines the level of increase or decrease of the level of money supply in an economy.

Therefore, the Option D is correct.

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The minimum selling price that should be acceptable in a special order situation is equal to total Select one: a. production cost plus a normal profit margin b. variable production cost c. variable costs and avoidable fixed costs d. production cost

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Usually, the minimum selling price that should be acceptable in a special order situation is equal to total variable costs and avoidable fixed costs

What is a special order?

This is a situation that involves a one-time customer order on a large quantity and a low price.

Hence, the minimum selling price to be accepted must equal to total variable costs and avoidable fixed costs for this orders.

Therefore, the Option C is correct.

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When should a seller's desire for a specific replacement property factor into the pricing strategy for the seller's current home?
a. Never.
b. In a hot market that's appreciating at more than 15% per year.
c. When the replacement property is comparable to the seller's current property.
d. When the desire for the other property outweighs the seller's need to get top market dollar for the current home.

Answers

Answer:

D.When the desire for the other property outweighs the seller's need to get top market dollar for the current home

Explanation:

How are letters of credit different from secured transactions?
O A. A letter of credit tells a prospective seller how much you can buy.
A secured transaction provides the bank with assurance of
repayment
O B. A letter of credit is sent from the seller to the buyer and a secured
transaction means the seller must ship the product.
O C. A letter of credit is covered in Article 9 and a secured transaction
is covered in Article 5 of the UCC.
D. There is no difference because the bank benefits in both cases,

Answers

Answer:

The answer is B, Bill of Lading.

Explanation:

i did research

Which of the following statements is correct? assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

Answers

If a project's NPV is less than zero, then its IRR must be less than the WACC is correct in the project being considered has normal cash flows, with one outflow followed by a series of inflows.

What is normal cash flow?

The normal cash flow stream consists of an initial investment outlay followed by positive net cash flow throughout the project's life cycle.

It's also known as a traditional cash flow stream. In a traditional cash flow stream, cash flows only change direction once.

Thus, if project is NPV is less than zero IRR is less then WACC

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Typical capital budgeting decisions include ______ decisions. Multiple select question. cost reduction lease or buy employee hiring and firing equipment selection product and service pricing

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Typical capital budgeting decisions include the decisions relating to the lease or buy, cost reduction, equipment selection, and product and service pricing.

What is capital budgeting?

Capital budgeting is the process that enables an entity to know the profitability of an investment made in long-term projects. It can be determined by using various methods like NPV, payback period, accounting rate of return, etc.

Capital budgeting decisions are as follows:

A) Lease or buy includes the decision whether to acquire the new asset or lease the existing ones.

B) Cost reduction can be done by replacing the old asset.

C) Equipment selection involves which equipment has to be acquired from the provided alternatives.

D) Product and service pricing relates to the type of product or service in which an entity has to invest.

Note: Hiring and firing of employees don't relate to the profitability of any long-term capital project.

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According to the Coase theorem, private parties can negotiate to an efficient solution in the presence of externalities if the ______ is (are) relatively low.

Answers

Answer:

transaction costs is your answer

Explanation:

Initially trade between the United States and Canada is balanced. Then, if a change in the exchange rate reduces the U.S. dollar price of Canadian goods, ceteris paribus*, we would expect ________________

Answers

If a change in the exchange rate reduces the U.S. dollar price of Canadian goods, ceteris paribus*, we would expect a trade surplus in Canada.

What is the impact of a decline in the exchange rate?

When  U.S. dollar price of Canadian goods declines, it means that the Canadian dollar has depreciated while the US dollar has appreciated. This means that there would be an increase in the demand for Candian goods. This would increase export. Thus, there would be a trade surplus.

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