What type of investment offers both capital gains and interest income?

Sadik Inc.'s bonds currently sell for $1,180 and have a par value of $1,000. They pay a $105 annual coupon and have a 15-year ma

Nadya [2.5K]

Answer:

7.74%

Explanation:

The yield to call would be the internal rate of return considering the cahsflow until the bodn is called. W can solve for that using excel IRR function;

We list the cashflow in order.

F0 -1180

F1 105

F2 105

F3 105

F4 105

F5 1205 (105 coupon payment plus 1100 principal)

We now write the function and get the YTC

=IRR(B1:B6) 7.7366%

3 0

4 years ago

Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexp

topjm [15]

Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexpectedly announced that it was not going to finish the job. Such a desertion of work is called "Abandonment of contractual obligations".

<h3>What is contractual obligations?</h3>

Contractual obligations are responsibilities that each party is bound by law to fulfill under the terms of the agreement.

Each contract involves one or both parties exchanging anything of value in connection with a variety of duties, such as goods, services, money, etc.

Elements of a Contract are-

Offer: An offer was made when one of the parties pledged to carry out or refrain from carrying out a specific action in the future.

Promise of consideration: A promise of something of value in return for the intended conduct or inaction. This can be demonstrated by a substantial outlay of resources, a promise to provide a service, a commitment not to do something, or reliance on the promise. The incentive for the parties to enter into the agreement is known as consideration.
Acceptance: The offer was unmistakably accepted. Acceptance can be demonstrated through words, actions, or by carrying out the contract's requirements. In general, the terms of the acceptance must match those of the offer. If not, the acceptance is interpreted as a counteroffer and rejection.

To know more about the contractual obligations, here

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8 0

2 years ago

"generally, assuming no negligence on the part of the victim, when an endorsement on a check has been forged and properly report

katen-ka-za [31]

The party that is liable for the loss is the BANK. This is because, the bank is liable for forged checks, if it fails to verify the signature on the check very well. It is written in the law that a payor bank that pays a check with a forged payee signature has paid a check that is not properly payable and is liable to its customer.

8 0

3 years ago

The financial crisis of 2008 demonstrated the flaw in a bottom-up detailed approach to calculating risk. There are

Troyanec [42]

Answer:

B

Explanation:

8 0

4 years ago

How did great britain enforce the payment of taxes.

andrew-mc [135]

Answer:

King George lll sent British soldiers to the colonies to enforce payment of taxes, because colonist sometimes smuggled goods into colonies to avoid paying taxes. ... The items were marked with a stamp to show the tax was paid.

4 0

3 years ago