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MariettaO [177]
2 years ago
10

An investor buys a $100,000, 10% corporate bond maturing in 2032 for $125,000. The bond is callable starting in the year 2022. W

hat is the most appropriate measure for calculating yield
Business
1 answer:
bogdanovich [222]2 years ago
7 0

The best measure for calculating yield that the investor can use for the bond is C. Yield to Call.

<h3>What is Yield to Call?</h3>

The bond is a callable bond which means that there is a chance the issuer will call it if interest rates drop too low.

The fact that the bond was purchased at the premium (price higher than par) means that interest rates are low so there is a good chance of the bond being called.

The investor should therefore use the yield to call which would take into account the possibility of the bond being called.

Options for this question include:

A. Total Return

B. Current Yield

C. Yield to Call

D. Yield to Maturity

Find out more on callable bonds at brainly.com/question/24129882.

#SPJ1

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What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expec
zhenek [66]

Answer:

Confidentiality

Explanation:

The Ethical standard of Confidentiality is one that demands an individual keeps information about a person or company out of public knowledge. It means that any information you have about a client or company that you work for is strictly meant to be between you and the company; no third parties. Information such as health details, company earnings, therapy session details, etc are examples of information meant to be kept confidential. A failure to keep confidentiality can result in legal action being taken against the erring individual.

Cheers

4 0
3 years ago
Derk owns 600 shares of stock in Rose Corporation. The remaining 1,400 shares of Rose are owned as follows: 200 by Derk's daught
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8 0
3 years ago
Because of uncertainty about future inflation, the union devotes a large quantity of resources to monitoring inflation indicator
IrinaVladis [17]

Answer:

C. Variable inflation is associated with high transaction costs

Explanation:

Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.

In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.

Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.

7 0
3 years ago
Vaughn Manufacturing has two divisions; Sporting Goods and Sports Gear. The sales mix is 75% for Sporting Goods and 25% for Spor
Cerrena [4.2K]

Answer:

The correct answer is 35%.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the Weighted average contribution margin ratio by using following formula:

weighted-average contribution margin ratio =  (Contribution margin ratio × Sales of sporting goods) + (Contribution margin ratio × Sales of sporting gears)

= ( 30 × 75% ) + ( 50 × 25%)

= 22.5% + 12.5%

= 35%

3 0
3 years ago
How can you best uncover challenges and constraints that employees deal with in their daily work.
Westkost [7]

Answer:

Assumptions and expectations are the root causes of workplace constraints.

Explanation:

To avoid workplace conflicts one needs detailed information and clarity. If we train ourselves to think in a positive way and act without anger will do wonders. Our conduct in a situation is going to be really different if we take some time to look at good intentions instead of immediately reacting. It's much more productive to turn a bunch of assumptions into a shared understanding of the information.

8 0
3 years ago
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