Ask Question
BusinessBusiness
20 February, 00:50

Selling the bonds at a premium has the effect of

+2
Answers (1)
  1. 20 February, 01:10
    0
    Answer: Selling the bonds at a premium has the effect of causing the cost of borrowing money to be lower than the bond when interest is paid.

    Explanation: When a bond is traded above the par value, it is being sold at premium. Since the bond is sold above it, the interest rate is higher but the cost to borrow money is lower. Purchasing a bond a premium is expensive because it is above market value but selling a bond at premium contributes to more money made off of the sale.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Selling the bonds at a premium has the effect of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Customers may believe the reason you are giving them too little eye contact is because you are trying to__ or __ along.
Answers (1)
Darell Hair Stylists's adjusted trial balance and statement of owner's equity follow. Balance Account Balance Debit Credit Cash $1,000 Accounts Receivable 900 Office Supplies 600 Equipment 19,700 Accumulated Depreciation - Equipment $2,000 Accounts
Answers (1)
12. To produce a textured purée, you would use a/an A. food processor. B. wide-mesh sieve. C. immersion blender D. food mill.
Answers (1)
A prospective tenant purchased a rental list from a broker and then rented a duplex that the list said included all utilities. The tenant discovered that only water was included in the rent and notified the broker within the legislated time limit.
Answers (1)
Jillian has just started her first job with a $45,000 salary at a company with a 401 (k) plan that has a 100% match up to 3% gross salary. She figures she can afford to save $3,000/yr out of her income for her retirement.
Answers (1)
New Questions in Business
That the total dollar amount of the debits equals the total dollar amount of the credits in the ledger accounts can be verified through a (n) a. balance sheet b. trial balance c. chart of accounts d. income statement
Answers (1)
Coronado Shoes Fool Inc. is involved in litigation regarding a faulty product sold in a prior year. The company has consulted with its attorney and determined that it is possible that they may lose the case.
Answers (1)
Suppose during 2014 that Federal Express reported the following information (in millions) : net sales of $35,497 and net income of $98.
Answers (2)
During a certain four-year period, the consumer price index (CPI) increased by 30%, but during the next four-year period, it increased by only 10%. Which of these conditions must have existed during the second four-year period? A. Deflation B.
Answers (2)
Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.).
Answers (1)
Home » Business » Selling the bonds at a premium has the effect of
Sign Up Forgot Password?