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allochka39001 [22]
3 years ago
5

28. Callable bonds generally: A. grant the bondholder the option to call the bond any time after the deferment period. B. are ca

llable at par as soon as the call-protection period ends. C. are called when market interest rates increase. D. are called within the first three years after issuance. E. have a sinking fund provision
Business
1 answer:
SIZIF [17.4K]3 years ago
4 0

Answer:

E. have a sinking fund provision

Explanation:

Callable bonds are the one wherein the issuer/borrower has an option to redeem the bonds anytime after an initial stipulated period. In case of such bonds, if the issuer decides to redeem the bonds, the holders have to accept the redemption value.

Usually, when market rate of interest on such bonds falls below the coupon rate of such bonds, the issuer redeems such bonds. Thus, such bonds are beneficial to the issuer.

Call protection refers to the period within which such bonds cannot be called or redeemed.

Sinking fund provision refers to transferring a portion of money during the duration of such callable bonds to a separate reserve known as sinking fund, which is created for the purpose of redemption of funds. So when such bonds are to be called, the total money transferred to sinking fund reserve would be raised and used for payment to bondholders.

Creation of such a reserve helps the issuer avoid the pressure of lump sum payment as periodically funds are set aside for the purpose of redemption.

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A social sciences researcher wants to know about the amount of money that couples without children spend on leisure travel. Her
Anit [1.1K]

Answer:

$18.74

Explanation:

the margin of error for a 95% confidence level = Z x (σ / √n)

  • Z for a 95% confidence level = 1.96
  • standard deviation (σ) = $160
  • sample size (n) = 280

the margin of error for a 95% confidence level = 1.96 x ($160 / √280) = 1.96 x ($160 / 16.733) = 1.96 x $9.56 = $18.74

8 0
4 years ago
The degree of customer contact measuresthe amount of time the customer is separated from the service delivery system.the amount
Aleksandr-060686 [28]

Answer:

the amount of time the customer is in the service delivery system.

Explanation:

In the case when there is a degree of contacting the customer determined that the value of the time that the customer would be in the system that represent the delivery of the service at the time when the service is generally produced or

So as per the given situtaion, the above statement represent the answer

3 0
3 years ago
A lawnmower assembly plant uses a variety of​ nuts, bolts,​ screws, and other fasteners in its operation. Its supplier delivers
PSYCHO15rus [73]

Answer:

<em>B. ​vendor-managed inventory. </em>

Explanation:

A simplified approach to inventory management and order fulfillment is the Vendor Managed Inventory (VMI).

VMI includes coordination between manufacturers and their customers (e.g. distributors, retailers, OEMs or end users of products) which transforms the conventional purchasing process.

VMI's <em>objective is to harmonize business goals for both suppliers and their customers and streamline supply chain operations.</em>

  • Higher Sales.
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8 0
3 years ago
What does sustainability refer to?a. the ability of a company to maintain high profits despite cutting pricesb. the ability of a
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Answer: Sustainability refers <u><em>to ability of a company to maintain high profits despite cutting prices</em></u>

It is defined as the procedure of individuals maintaining alteration in a harmonious surroundings, here the exploitation of commodities and resources, investments, technological development and organizational changes are in concord and heightens actual and forthcoming potential to meet needs and aspirations.

8 0
4 years ago
Consider the following scenario analysis:
seropon [69]

Based on the scenario analysis on stocks and bonds, we know the following:

  • Treasury bonds will provide a higher return in a recession than in a boom.
  • The expected return of Bonds is 9.8% and that of stocks is 11.6%.
  • The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

#SPJ1

3 0
2 years ago
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