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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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den301095 [7]

Answer:

Cost of merchandise sold = $ 28

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The ending inventory under the LIFO method = $ 18

Explanation:

Given:

October 5,

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Unit cost = $5

on October  12,

Purchased units = 1

Unit cost = $ 13

On October 28,

Purchased unit = 1

Unit cost = $ 15

Total cost of the 3 units purchased = $33

Now, the unit sold on October 31 will be the unit purchased in the end i.e on October 28

thus,

Cost of merchandise sold = $ 28

Gross profit = Selling price of the unit - Unit price of purchase

or

Gross profit = $ 28 - $ 15 = $ 13

now, the ending inventory under the LIFO method = $ 5 + $ 13 = $ 18

4 0
3 years ago
Read 2 more answers
You are trying to decide between a par value corporate bond carrying a coupon rate of 6.25% per year and a par value municipal b
FinnZ [79.3K]

Answer:

D.

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Explanation:

we should make the important difference that municipal bonds are tax free while corporate bonds don't.

Therefore we should solve for the after tax rate fo the corporate bond:

pretax (1-t) = after tax -rate\\0.0625(1-0.28) = 0.0625(0.72) = 0.045

The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive

We can also solve for the pre-tax rate of the municipal bond:

pretax(1-t) = after tax - rate\\pretax (1-0.28) = 0.0475\\pretax = 0.0475/0.72 = 0,065972 = 0.066

the municipal bonds would be equivalent to a 6.6% corporate bonds.

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6 0
3 years ago
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LiRa [457]

Answer: Because private companies will have difficulty getting anybody to pay for them.

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Private markets fail to provide the optimal amount of some good such as public firework displays because private companies will have difficulty getting anybody to pay for them.

The main motive behind private markets are simply for making of profit but for public, the main motive is for the government to satisfy the needs to the people. Hence, with regards to the question, the answer will be that there'll be difficulties encountered in getting people to pay for the goods.

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3 years ago
Today companies such as Nike, Walmart and Apple are trying to stop certain harmful practices and prevent managers abroad from ad
Leni [432]

Answer:

where is the wuestion

Explanation:

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2 years ago
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The correct answer is C
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