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1 year ago

The legal document that describes the rights and obligations of both the bondholders and the issuer is called the bond.

1 answer:

4 0

The legal document that describes the rights and obligations of both the bondholders and the issuer is called the <u> indenture</u> bond.

<h3>What is meant by indenture?</h3>

A legal and binding agreement known as an indenture is frequently related to bond deals, real estate, or bankruptcy. A thorough description of the terms, conditions, and covenants can be found in an indenture.

<h3>Who is bondholder?</h3>

A bondholder is a buyer or the owner of debt instruments, which are frequently issued by governments and enterprises. In essence, bond issuers are borrowing money from bondholders. When bonds mature, bondholders are reimbursed for their initial investment, or principle.

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Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cas

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<span>Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cash value. His plan is a whole life policy.</span>

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3 years ago

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed

julia-pushkina [17]

Answer:

- BEP in unit: 4,000 units;

- In case fixed cost increases by 10%, New BEP in unit: 4,400 units.

- Net income: 1,000,000p.

- BEP in units if sale price to decrease : 8,000 units => Price change should not take place as it moves the company from making 1 million peso profit to a loss as sales in units (1,200 + 5,000 =6,200) is lower than break-even point ( 8,000 units).

Explanation:

Please find detailed calculations as below:

- BEP in unit is calculated as Fixed cost/ Margin earned by one product = 4,000,000/(3,000 - 2,000) = 4,000.

- New BEP in unit is calculated as New Fixed cost/ Margin earned by one product = (4,000,000 x 1.1)/(3,000 - 2,000) = 4,400.

- Net income: Sales - fixed cost - variable cost = 3,000 x 5,000 - 4,000,000 - 2,000 x 5,000 = 1,000,000 p

- BEP in units if sale price to decrease: Fixed cost/ Margin earned by one product = 4,000,000/(2,500 - 2,000) = 8,000.

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3 years ago

using pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the marke

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Using penetration pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the market.

In order to attract customers, the penetration pricing approach entails launching a new good or service at a cheap price. Gaining market share and aggressively attracting clients through low costs are the objectives. In a pricing strategy known as penetration pricing, a product's price is first set very low to quickly reach a large portion of the market and spread word of mouth. The tactic relies on the notion that consumers will transfer to the new brand as a result of the price reduction.

When companies launch a low price for a brand-new good or service, this is known as penetration pricing. Competitors are compelled to match the offer or immediately implement alternative techniques since the first price undercuts it. Customers of rivals could switch to the less expensive product.

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1 year ago

A central bank buys treasury securities at market rates in order to:

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Answer:

C increase the money supply in the economy

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3 years ago

Tax cuts _________.A) and increases in government expenditures shift aggregate demand right.B) and increases in government expen

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Answer: A. and increases in government expenditures shift aggregate demand right.

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When there is tax cut or reduction in tax, there will be more disposable income which will increase consumption and savings and in turn shift the aggregate demand to the right.

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