Why do some bonds sell at a premium? How does a premium impact the effective interest rate?
What will be an ideal response?
When the market rate is lower than the stated rate, bonds will sell at a premium so as to reduce the effective rate to the market rate. When bonds are sold for more than their face value, the difference between the amount received and the face value is called a bond premium. Bond premiums reduce the effective interest rate.
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Which of the following is a true statement about the Four Ps of the marketing mix?
A) A decision about one of the Ps affects every other marketing-mix decision. B) Product is always the most important of the Four Ps. C) Place is typically the least important of the Four Ps. D) The Four Ps have little effect on a product's market position. E) The Four Ps are used to determine a product's target market.
Managerial judgement is not a factor in determining cost behavior
Indicate whether the statement is true or false
Big Beef, Inc raises calves to sell. Big Beef breeds its cows in April, and the cows calve in February of the following year. In January Andrea contracts with Big Beef to buy fifty calves. Identification takes place in
a. January, when the contract is signed. b. April, when the calves are conceived. c. February, when the calves are born. d. a reasonable period of time.
A credit collection agency may contact a debtor at any time.?
Indicate whether the statement is true or false