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mihalych1998 [28]
3 years ago
14

An investor owns a 6% bond issued by ABC Corporation that is callable at 102 ($1,020) next May 1. All of the following statement

s are true regarding the call EXCEPT
A) up until May 1, the investor has call protection
B) it is likely that once the bond is called, the investor will also be exposed to reinvestment risk
C) when bonds are called, they are usually called at a premium to par
D) the bond is probably being called by the issuer because interest rates went up
Business
1 answer:
Alexxandr [17]3 years ago
6 0

Answer:D) the bond is probably being called by the issuer because interest rates went up

This statement is not true because when interest rates go up the issuer is at an advantage as he had previously borrowed money at a interest rate which is lower than the present interest rate, as interest rates have risen. Also when interest rates rise and the issuer calls the bond he will have to pay higher interest to re borrow money and this is foolish thus the issuer will not call the bond when interest rates rise. The issuer will call the bond when interest rates fall, as the issuer can re issue the bonds and borrow money at lower interest rates.

Explanation:

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Duluth Ranch, Inc. purchased a machine on January 1, 2018. The cost of the machine was $21,500. Its estimated residual value was
SVEN [57.7K]

Answer:

Explanation:

Cost of acquisition - $21,500

Residual value - $6,500

Depreciable amount - 21500-6500 =15,000

Useful life = 5 years

Total units produced = 10000

Depreciation rate = 1/5*100 = 20%

Double depreciation raate = 40%

Depreciation                           2018                  2019

Straight line 20%*15000        3000                3000

Units of production

850/10000*15000                   1275

1300/10000*15000                                          1950

Double declining balance method

2018 = 40%*21500 = 8600

2019 =(21500-8600) *40%= 5160

2020  (12900 -5160)*40% = 3096

2021   (7740-3096) *40% =1858

2022 (4644-1858)*40% = 1114

5 0
4 years ago
The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attrac
madam [21]

Answer:

A. Strategy

Explanation:

A  Strategy is the direction set for the an organisation and its various methods to achieve a desired goal and objective in the future.  A strategy involves utilizing and allocating resources within the organisational environment in other for the organisation to meet its stated objectives.   In simple words, strategy is the blue print that an organisation uses to achieve its objectives

5 0
3 years ago
Our culture has a split personality about big tech companies like Google. On the one hand we are constantly afraid that they are
Step2247 [10]

Answer: The correct answer is "domination."

Explanation: Our culture has a split personality about big tech companies like Google. On the one hand we are constantly afraid that they are out for world <u>DOMINATION.</u> On the other hand, we love what they offer us and make them our heroes.

Generally, the big global technology companies offer us multiple tools that make it easier for us every day, but on the other hand these companies have a great amount of information from all over the world, with which a lot of damage could be caused if other purposes are pursued.

5 0
3 years ago
How has globalization affected the world since the mid-20th century?
Mamont248 [21]

Answer:

C

Explanation:

A P E X

4 0
3 years ago
Read 2 more answers
Classroom management is largely unaffected by the characteristics of the students making up the class.A. TrueB. False
ivanzaharov [21]

Answer:

B: False

Explanation:

Classroom is the place where different types of students come together and get education together. Each and every student is different in him or herself. When it comes to the management of classroom, definitely, its environment is defined and made by its students. It is seen that there are some classrooms which are easy to handle, manage and look after, moreover, they are very interactive as well. Logic and reason behind them is the type of students they are made up of. Students, surely defined the culture of that class, which could be very decent culture, making very less noise, obedient culture etc. Therefore, Classroom management is largely unaffected by the characteristics of the students making up the class is a False Statement.

3 0
4 years ago
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