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fomenos
3 years ago
14

Meacham Enterprises' bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15

-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)
Business
1 answer:
Flauer [41]3 years ago
7 0

Answer:

Yield to call (YTC) = 7.64%

Explanation:

Yield to call (YTC) = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]

YTC = {135 + [(1,050 - 1,280)/5]} / [(1,050 + 1,280)/2]

YTC = 89 / 1,165 = 0.07639 = 7.64%

Yield to call is how much a bondholder will earn if the bond is actually called, and it may differ from yield to maturity since the call price is generally higher than the face value, but the yield to maturity generally is longer than the call period.

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In a closed​ economy, the values for​ gdp, consumption​ spending, investment​ spending, transfer​ payments, and taxes are as​ fo
BartSMP [9]

Answer:

Private saving = $2 trillion

Public saving = $1 trillion

Explanation:

Private saving = GDP - Taxes + Transfer payments - Consumption spending

= Y - T + TR - C

= $11 - $2 + $1 - $8

= $2 trillion

Public saving = Taxes - Government spending - Transfer payments

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= $2 - $0 - $1

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Therefore;

Private saving = $2 trillion, Public saving = $1 trillion

3 0
3 years ago
Tactical decisions are concerned with a. the domain of operations managers, who are close to the customer. b. the day-to-day act
deff fn [24]

Answer:

How the organization should achieve the goals and objectives set by its strategy.

Explanation:

Tactical Decision: Short term decision making, it is done to support the strategy of the company.

There are controllable elements in the strategy like production such as, company sets a strategy of producing more goods than other firms. Then through <em>Tactical Decision Making </em>this goal would be achieved.

4 0
3 years ago
Read 2 more answers
Which fiscal policy would be the most contractionary? 
A. A $40 billion increase in taxes
B. A $50 billion increase in governmen
Elena L [17]

Answer: Option (C) is correct.

Explanation:

Correct option: A $50 billion decrease in government spending would be the most contractionary fiscal policy.

A. Increase the taxes by $40 billion is also a contractionary fiscal policy but it doesn't have a greater impact than decreasing  the government spending by $50 billion.

B. It is an expansionary fiscal policy.

D. There are both expansionary fiscal policy by decreasing taxes by $10 billion and contractionary fiscal policy by decreasing government spending by $40 billion. But it doesn't have much impact as the option (C) is having.

Therefore, Option (C) is having the most contractionary fiscal policy.

5 0
3 years ago
This case explores some issues related to entering a new foreign market and describes the strategies that one UK firm is using t
gizmo_the_mogwai [7]

Answer:  Megabus being a late mover in the US, has allowed the company to learn from past mistakes by companies such as Greyhound, who filed for bankruptcy in the mid 90's and who lost most of it's business due to poorly maintained terminals, high prices for fares and unsafe conditions. Mega bus's advantages include fares as lows as 1 dollar, free wi-fi, stylish buses and power outlets. They Can offer these low fares since the company eliminated purchase Windows for tickets, selling tickets online only and by eliminating expensive terminal operations by dropping off and picking up riders at sidewalk stops like public bus operators. There are few disadvantages besides the fact that rising gas prices affect travel and low fare prices affect revenue if quantity is not met   .

Advantages - 1. Affordable  2. Pretty scenery 3.You get what you paid for

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4 0
3 years ago
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MaRussiya [10]

Answer:

<h2>In this case,the answer would be option D. or It can be a source of competitive advantage for a period of time.</h2>

Explanation:

  • In Production Economics,any organizational input in the production process can provide competitive advantage to any firm or company for a sustainable period of time only if it provides commercial or economic value to the firm or company,it is unique and it cannot be completely imitable or substituted through other equivalent resource/s by other market competitors.
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3 0
3 years ago
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