OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year
Question:
O’Shea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________.
A. More than 6%
B. Less than 6%
C. Equal to 6%
D. Cannot be determined from the information given.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (6 reviews)
If Issued price Par value then Coupon rate will be less than the Market r...View the full answer
Answered By
Marvine Ekina
Marvine Ekina
Dedicated and experienced Academic Tutor with a proven track record for helping students to improve their academic performance. Adept at evaluating students and creating learning plans based on their strengths and weaknesses. Bringing forth a devotion to education and helping others to achieve their academic and life goals.
PERSONAL INFORMATION
Address: , ,
Nationality:
Driving License:
Hobbies: reading
SKILLS
????? Problem Solving Skills
????? Predictive Modeling
????? Customer Service Skills
????? Creative Problem Solving Skills
????? Strong Analytical Skills
????? Project Management Skills
????? Multitasking Skills
????? Leadership Skills
????? Curriculum Development
????? Excellent Communication Skills
????? SAT Prep
????? Knowledge of Educational Philosophies
????? Informal and Formal Assessments
0.00
0 Reviews
10+ Question Solved
Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Question Posted:
Students also viewed these Business questions
-
Bonds A and C both have a face value of $1000 and pay a coupon rate of 6.5%. They have 5 and 20 years, respectively, remaining until maturity. Calculate the yield to maturity of each bond if it is...
-
Bonds D and E both have a face value of $1000 and pay a coupon rate of 7%. They have 5 and 20 years, respectively, remaining until maturity. Calculate the yield to maturity of each bond if it is...
-
A five-year bond is issued with a face value of GHC3000.The bond pays coupon semiannually at 10%. The yield to maturity is 8%. Another five-year bond with the same face value is provides a coupon of...
-
Consider a country that imports steel and exports automobiles. The value per unit of cars exported is measured in units of thousands of dollars per car by the random variable X. The value per unit of...
-
P Corporation acquires all of S Corporations stock at the close of business on December 31 of Year 1. The corporations, which file on the calendar year, begin filing a consolidated tax return for...
-
Jared Monsma, Weekend Golfers vice president for marketing, has concluded from his market analysis that sales have been dwindling for the standard golf cart because of aggressive pricing by...
-
By what means would a depressed country in an economic union with a single currency be able to recover? Would the market provide a satisfactory solution or would (union) government intervention be...
-
What microenvironmental factors have affected Targets performance over the past few years? When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two...
-
For each type of timer circuit below, draw the simplified RC circuit that you could use to analyze the behavior of the capacitor (CM or CA) as it charges. Solve the resulting ODE and plot the...
-
This practice set is designed in five parts. In the first part, the student will complete the journal entries for the month in a manual accounting system for Maverick's Boards. In the second part,...
-
Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. More than 7% B....
-
Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. A debit to Bonds Payable for $100,000 B. A...
-
You are running a hot Internet company. Analysts predict that its earnings will grow at 40% per year for the next five years. After that, as competition increases, earnings growth is expected to slow...
-
What is a Community Revitalization? What approaches to community engagement improve resident participation ?
-
The following table values have been measured for the change of the specific heat (C) of the air with the temperature (T). 2200 T(K) 2000 2100 2300 2400 2500 C(kj/kgK) 2,141 2,157 2,172 2,186 2,198...
-
BHP is a MNC with a corporate-wide long-term debt to equity ratio of 0.75. BHP prefers to issue corporate bonds at a post-tax cost of 4.55%, and a cost of common equity capital of 13.08%. Suppose...
-
This is my specific instruction. so I want you to make a new class called StudentsService in the com.sait.itsc315.services package AND modify AppDriver . I will attach my appdriver, student, students...
-
. Given f(x)= 16. Use the tables to -10 11 2 3 H x K) 2 521 D-1 7x-4 3x +1 a. k/~/2) b. h/k (2)) 15. The formula v= f()\ = 4/ gives the valune of a sphere of radior find a formula for the inverse...
-
In addition to state-of-the-art technologies, the production of quality wine is strongly influenced by the natural endowments of the grape-growing region-called the "terroir." The Economic Journal...
-
Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?
-
What is the dollar price of a zero coupon bond with 17 years to maturity, semiannual compounding, and a par value of $1,000, if the YTM is a. 4 percent b. 10 percent c. 14 percent
-
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 23 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is a. 7...
-
Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
-
Bond Prices [LO2] Weismann Co. issued 15-year bonds a year ago at a coupon rate of 4.9 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5...
-
D. Provide Financial Statement Analysis Short-term solvency ratios o Current ratio Write a story behind the ratio in the year 2023. (1 point) The ratio changed (either increased or decreased) from...
-
ABC company is currently producing and selling 215,000 units a year The selling price is The variable expenses are 12.00 per unit 7.25 per unit Total fixed expenses are 237,500 per year. Net income...
Study smarter with the SolutionInn App