Business
Business, 26.10.2019 09:43, gummybear0

When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at?

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Business, 06.07.2019 01:30, lujaynsparkles
On january 1, a company issues bonds dated january 1 with a par value of $400,000. the bonds mature in 5 years. the contract rate is 7%, and interest is paid semiannually on june 30 and december 31. the market rate is 8% and the bonds are sold for $383,793. the journal entry to record the first interest payment using the effective interest method of amortization is:
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Business, 20.08.2019 00:20, mem8163
Round dot inns is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. the bonds will mature in 10 years and will be sold at par. given this, which one of the following statements is correct? a. the bonds will sell at a premium if the market rate is 5.5 percent. b. the bonds will become discount bonds if the market rate of interest declines. c. the bonds will pay 10 interest payments of $60 each. d. the bonds will initially sell for $1,030 each. the final payment will be in the amount of $1,060.
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Business, 30.09.2019 21:00, cravens511peeelg
Which of the following statements is correct? a. corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used. b. the actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond. c. a callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond. d. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate. e. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate.
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Business, 15.11.2019 00:31, nvc1127
Which of the following statements is correct? question 14 options: two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is below the coupon rate than if it is above the coupon rate. a callable 10-year, 10% bond should sell at a higher price than an otherwise similar noncallable bond. corporate treasurers dislike issuing callable bonds because these bonds may require the company to raise additional funds earlier than would be true if noncallable bonds with the same maturity were used. two bonds have the same maturity and the same coupon rate. however, one is callable and the other is not. the difference in prices between the bonds will be greater if the current market interest rate is above the coupon rate than if it is below the coupon rate. the actual life of a callable bond will always be equal to or less than the actual life of a noncallable bond with the same maturity. therefore, if the yield curve is upward sloping, the required rate of return will be lower on the callable bond.
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