A $5,000 bond issue with a stated interest rate of 11%, when the market rate of interest is 11%, means that the bond will sell for:
A) $5,550.
B) $5,000.
C) more than $5,000.
D) less than $5,000.
B) $5,000.
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Which of the following statements is true of an insurable interest in goods?
A. Sellers have an insurable interest in goods at the moment the goods are identified to the contract. B. Sellers have an insurable interest in their goods as long as they have title to the goods or a security interest in them. C. Buyers have an insurable interest in goods at the moment they pay for the goods. D. Buyers have an insurable interest in goods at the moment they get the title to the goods.
Define the terms Relevant Cost and Sunk Cost.
What will be an ideal response?
In 2020, the Merkel Company had revenues of $2,000,000 and costs of $1,500,000. During 2021, Merkel will be introducing a new product line that is expected to increase sales revenue by $200,000 and costs by $160,000. Assuming no changes are expected for the other products, the operating profits are expected to increase by:
A. $40,000. B. $540,000. C. $160,000. D. $200,000.
A bond's principal value is also referred to as the maturity value because:
A. it is always repaid at a discount prior to the bond's maturity. B. it is written on the face of the debt contract. C. it is repaid at the maturity date. D. it is added to interest payments that are repaid at the maturity date. E. it is issued at a value below par value to generate a positive capital gain.