1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
An individual who wants others to pay for public goods, but plans to use those goods for their own purposes, is often referred t
Ann [662]

Answer:

free rider

Explanation:

Free Rider is someone who would not choose to pay for a certain good or service, but who would get the benefits of it anyway if it were provided as a public good.

7 0
3 years ago
Read 2 more answers
Two types of value that are often contrasted are subjective value and: Group of answer choices A. inherent value B. reproduction
Ilia_Sergeevich [38]

Answer:

The correct answer is letter "C": objective value.

Explanation:

Subjective values are those provided by individuals based on their <em>beliefs, perceptions, ideas, feelings, </em>and <em>reflections</em>. Subjective values are biased. Objective values, on the other hand, are based on <em>facts, statistics, evidence, </em>and <em>observations</em>. Objective values are unbiased.

6 0
3 years ago
A(n) ____ is the transfer of the control of operations and management from one firm to another with the former becoming a unit o
olya-2409 [2.1K]

Answer:

acquisition

Merger

Explanation:

Acquisition is when a company purchases almost all the shares of another company in order to have full control over it. For companies that are distressed or are not able to operate as a going concern, such can put up the company for sale.

In acquisition, the buying company oftentimes retain its name which is already a brand , work and build on the strength of the old company in order to achieve returns. Companies acquire other companies in order to have large market shares and also to diversify their business operation.

One of the benefit of acquisition is that it gives room for fresh ideas due to coming together of different people and also brings people that are experts in their various fields.

Merger is when two or more firms comes together to form a single entity.

Companies or firm merge in order to form an alliance and also send strong signals to other competitors.

Firms also merge in order to increase their financial capacity. This will enable them to be able to finance their business operations. They are also able to increase their asset base as a result of the merger.

4 0
3 years ago
Almost have level 60 :D
wolverine [178]
Oh wow, Great Job! :)
4 0
3 years ago
Transactions for Sunland Company for the month of June are presented below.
aev [14]

Answer:

Date          Account Detail                                    Debit                   Credit

June 1        Cash                                                $4,080

                  Common Stock                                                            $4,080

Date          Account Detail                                    Debit                   Credit

June 2       Equipment                                        $1,720

                 Accounts Payable                                                         $1,720

Date          Account Detail                                    Debit                   Credit

June  3      Rental expense                                  $910

                  Cash                                                                                $910

Date          Account Detail                                    Debit                   Credit

June 12     Accounts Receivable                         $800

                 Welding Revenue                                                           $800

6 0
2 years ago
Other questions:
  • The best way to focus your attention on your most important daily goals is to use a
    14·1 answer
  • Which of the following is an example of the free-rider problem? a. Both Zoe and Zach receive low-cost dental care at the local d
    6·2 answers
  • Agreement and disagreement among economists.
    9·1 answer
  • "Clothing maker The Gap states that its purpose as an organization is to "create emotional connections with customers around the
    10·1 answer
  • Angela's monthly disposable income is ​$2928. She has monthly expenses of ​$ 2664 ​(including recreational expenses of ​$379​) a
    6·1 answer
  • Kertis, Inc. reported Net fixed assets as follows on its Balance sheets for December 31, 2011 and December 31, 2012: 2011 2012 N
    9·1 answer
  • Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportati
    7·2 answers
  • Autonomous consumption is defined as: Group of answer choices the level of consumption that depends only on the exchange rate. t
    7·1 answer
  • I have never.....in a bar before a . working b.work c. worked d .works e been works​
    11·2 answers
  • Assume that you invest 5 percent of your salary and receive the full 5 percent match from East Coast Yachts. What EAR do you ear
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!