If the market interest rates increase during the life of a bond, the issuer will ______ on this bond.
a. record a loss
b. not change the amount of interest paid
c. record a gain
d. increase the amount of interest paid
Ans: b. not change the amount of interest paid
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The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as follows:
Sales (160,000) gallons $500,000 Variable costs 312,000 Contribution margin 188,000 Fixed costs 100,000 Net Income $ 88,000 Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is a) $0.55 per gallon. b) $1.95 per gallon. c) $2.50 per gallon. d) $1.18 per gallon.
The marketing and sales budget of Fisk Inc is estimated to be $500 million and its marketing administration cost is estimated to be $120 million. The acquisition cost per customer is $400 and it is 10 times more than the retention cost per customer
If 320,000 customers are retained, what is the total number of new customers acquired by Fisk Inc? A) 145,000 customers B) 350,000 customers C) 918,000 customers D) 642,000 customers E) 786,500 customers