Selling the bonds at a premium has the effect of

Question

24-04-2019
Business

contestada

Selling the bonds at a premium has the effect of

Respuesta :

Otras preguntas

A radio disc jockey has 8 songs on this upcoming hour's playlist: 2 are rock songs, 4 are reggae songs, and 2 are country songs. The disc jockey randoml

During World War I, the Russian army was

Match the y-coordinates with their corresponding pairs of x-coordinates on the unit circle. the x coordinates to choose from are: - 2 times the square root of 1

I need it ASAP! Stephanie sold 200 flats of fruit on both Friday and Saturday at her fruit stand. She recorded the number of flats of each type of fruit she sol

A 1.0 M H2S solution has a pH = 3.75 at equilibrium. What is the value of Ka? 3.16 × 10−21 3.16 × 10−8 8.89 × 10−5 8.89 × 10−8

Which two items should be written as the top of a skeleton outline

A movie rental store rents dvds for $3.50 each. how much will the store make after it rents 22 dvds.

What is the area of a rectangle with length 5 inch and width 2.7 inch

Will drawing an angle bisector always result in two acute angles?

The US troop “surge” in Iraq in 2007 A)gradually increased violence. B)gradually decreased violence. C)quickly increased violence. D)quickly decreased violenc

MrsTriplet MrsTriplet · Answer 1 · 2019-04-29T16:19:42+02:00

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.