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
harina [27]
4 years ago
15

Permian Underground Machines & Pipes Co. (PUMP) is in the oil and gas equipment and services industry. It is considering a n

ew oilfield services operation in the Permian Basin. This project would require an outlay of $50 million.
Suppose that PUMP hires Moody’s to assess the company’s credit quality if it were to issue the bonds. Moody’s advises PUMP that it would rate its bonds as Baa.

Managers at PUMP consider issuing a 10-year bond. Currently, the yield on a U.S. Treasury bond with about 10 years to maturity is 1.46%.

Estimate the required rate of return for the bond that PUMP managers are considering.

a. 1.46%
b. 3.86%
c. 5.40%
d. 8.95%
e. 1.93%
Business
1 answer:
AVprozaik [17]4 years ago
3 0

Answer:

Option A is correct.

The required rate of return for the bond that PUMP managers are considering is <u>1.46%</u>

Explanation:

Required rate of return for the bond that PUMP managers are considering is 1.46%.  Because, currently, the yield on a U.S. Treasury bond with about 10 years to maturity is 1.46%. same type of bond yielding is 1.46%.

You might be interested in
100 POINTS** How does the book " Sounder " Represent Christianity?
xz_007 [3.2K]

William H. Armstrong was the native of Lexington, Shenandoah Valley. he mentioned his school days and about the church in the book "Sounder".

<h3>What was mentioned in the "Sounder" book about the Christianity?</h3>

Armstrong changed his mind about the Bible. He has so many questions about that, due to which he start writing his own books to find the answers.

His main interest was to write about the questions of young and old people related to the Bible.

He appeals to various ages and Christianity.

Learn more about the book Sounder here:-

brainly.com/question/20630493

#SPJ1

5 0
2 years ago
Sheffield Corp. compiled the following financial information as of December 31, 2017:
kramer

Answer:

Explanation:.

3 0
3 years ago
Why do monopolies engage in price discrimination when possible? Enumerate and explain the nature of possible impediments to pric
TEA [102]
Monopolies engage in price discrimination possible because they can get away with it.

A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay. 

Consumers must pay the price of said product because they can not get the same product from any other seller.
6 0
3 years ago
There have been several instances in the last 150 years when valuable materials such as diamonds have been found contained in gl
Lana71 [14]

Answer:

<u>Lateral moraine</u>

Explanation:

It is important to note the duration of years here; 150 years ago. The Lateral moraine is a very familiar image when dealing with glaciers.

Therefore, the Lateral moraine would be most useful for tracing valuable gold deposits back to their bedrock source area since it is also an unconsolidated debris that is found on the side of glaciers.

6 0
3 years ago
Which of the following statements is the best way to state your position in a conflict?
Dima020 [189]
Answer A, it causes the least conflict and the person should not feel attacked. It also shares your emotion about the situation in a polite way.
8 0
4 years ago
Read 2 more answers
Other questions:
  • Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you
    7·1 answer
  • The following data are given for Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard
    12·1 answer
  • Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is i
    12·1 answer
  • Indicate whether the following accounts generally will have (a) debit entries only, (b) credit entries only, or (c) both debit a
    12·1 answer
  • T. Bina and M. Valley are partners with equal capital balances of $50,000 each. They agree to let R. Smith invest $20,000 in the
    15·1 answer
  • Which of the following is recommended when paying a credit card bill?
    8·1 answer
  • Company acquired land and buildings for $1,000,000. The land is appraised at $450,000 and the buildings are appraised at $800,00
    12·1 answer
  • A property is under an effectively dated contract of April 23rd, with a 15-day financing contingency extending through the date
    5·1 answer
  • Whether supplier-seller relationships in an industry represent a strong or weak source of competitive pressure is a function of
    14·1 answer
  • assuming everything else stays the same, an increase in the price of laptop computers will of laptop computers.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!