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Nataliya [291]
2 years ago
8

If the coupon rate of a bond is equal to its required rate of​ return, then​ ________.

Business
1 answer:
Sindrei [870]2 years ago
4 0
<span>When the coupon rate of a bond equal to its required rate of return, then it is purchased at par since the initial investment is totally offset by repayment of the bond at maturity, leaving only the fixed coupon payments as profit. The correct answer is - is equal to par value.</span>
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First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If
Vadim26 [7]

Answer:

The correct answer is then it has required reserves of $110 and holds excess reserves of $190.

Explanation:

According to the scenario, computation of the given data are as follows:

Total deposit = $1,000 + $100 = $1,100

So, we can calculate the total reserve required by using following formula:

Total reserve required = 10% × Total deposit

= 10% × $1,100 = $110

And Previous excess = $100

Current access = $90

So, Excess reserve =  Previous excess +  Current access

= $100 + $90

= $190

5 0
2 years ago
Shawn received an e-mail offering a great deal on music, movie, and game downloads. He has never heard of the company, and the e
lianna [129]
Shawn should report the email
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2 years ago
Read 2 more answers
A company currently makes a component used in production. The per unit costs incurred to make the component include: Direct mate
elixir [45]

Answer:

The company should make the components because incremental costs are $2 less than the purchase price

Explanation:

The cost of making each unit of component = Direct Labour + Direct Material + Variable Overhead*

*The overhead cost of $4 contains both a fixed and variable element. It has been mentioned that 25% of overhead cost is incremental i.e. it increases with each additional unit produced (marginal cost). The incremental cost is the variable element.

Variable element = $4 x 25% = $1

Fixed element = $4 x 75% = $3

Thus, the cost of making each unit of component = $5 + $2 + $1 = $8,

whereas the cost of purchasing each unit of complement is $10. Hence, the company should produce the component as it is less by $2 ($10 - $8) to produce than it is to purchase.

5 0
2 years ago
Lilly would like to start investing. What tools and services can she benefit from?
Dmitrij [34]
Here are the tools and services that might be beneficial for Lily: 

- Brokerage service, so Lilly could gain access to various kind of private company that is not available on the stock market.

- Stock market software, which contains algorithms that analyze the stock price movement and create a graph to predict how the future price might go.
5 0
2 years ago
Hal E. Burton hospital can purchase a new machine (to be placed in an undisclosed location) for $1,000,000 that will provide an
Ksju [112]

Answer:

$153,000

Explanation:

The computation of the net present value is shown below:

= Present value of all cash inflows including salvage value after considering the discount factor - initial investment

where,

Present value  is

= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year

= $300,000 × 3.0696  + ($300,000 + $100,000) × 0.5803

= $920,880 + $232,120

= $1,153,000

And, the initial investment is $1,000,000

So, the net present value is

= $1,153,000 - $1,000,000

= $153,000

4 0
2 years ago
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