Answer:
The company's after-tax cost of debt is
Explanation:
Please find the below for detailed calculation and explanations:
The company's after-tax cost of debt is equal to: Bond's yield to maturity (YTM) x ( 1- tax rate). As tax rate is given, we need to calculate the YTM.
Bond's YTM is the discount rate which brings net present value of all cash flows from the bond, which are 15 annual interest payments of $60 each ( $1,000 x 6%) and face value repayment of $1,000 at maturity, equal to its current market price of $1,075. So, it is calculated as below:
( 60/ YTM) x [ 1 - (1+YTM)^-15 ] + 1,000/ (1+YTM)^15 = 1,075 <=> YTM = 5.26%.
=> The company's after-tax cost of debt is equal to: Bond's YTM x ( 1- tax rate) = 5.26% x ( 1 - 32%) = 3.58%.
NO. Consolidated has not tendered delivery.
<span>Tender of delivery means that the seller offers the goods to the buyer by putting or holding them at the disposition of the buyer. Seller also gives the buyer some notification reasonably necessary for taking delivery.
</span>
In this case, Oscar is open 6 am to 8 pm daily. Delivery arrived at 10 pm where no one is there to accept the delivery. Only until Oscar or anybody that is authorized by Oscar to accept delivery is actually in the premises to receive the goods being delivery will Consolidated be able to tender delivery.
Answer:
speculative bubble
Explanation:
In simple words, A financial bubble is a increase in asset prices within a certain market, product, or investment vehicle that is caused by optimism as contrasted to certain asset class dynamics.
Typically, a financial bubble is triggered by unrealistic expectations of potential prosperity, market inflation or other activities that may cause asset prices to rise.
This optimism and subsequent action drives greater levels of trade, and as more people converge around the increased demand, buyers outstrip sellers, driving values above what an unbiased intrinsic worth analysis would imply.
The characteristics of a contract that's illustrated by the insurance is known as adhesion.
<h3>What is an insurance?</h3>
It should be noted that an insurance simply means a form of protection against risk management.
In this case, the fact that Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions is known as adhesion.
Learn more about insurance on:
brainly.com/question/25855858
Answer:
<em>In theory, both are riskless but in practicality they aren't completely risk free.</em>
Explanation:
<em>In investment theory</em>, the investment in government bonds is <em>riskless </em>, irrespective of the investment maturity period because they are backed by the government.
However, <em>in practicality</em> every investment involves risk whether it's a short term or long term. However, a short term investment like the one specified in <em>statement 2</em> involves lower time frame and thereby lower volatility, hence it implies <em>lower risk</em>. The investment specified in <em>statement 1</em> is of longer term and hence can involve higher volatility, hence it implies <em>higher risk.</em>
<em><u>Note</u></em><em>- All the governments are prone to risk practically</em> because they are also part of the global financial and economic system and hence, they have to manage their budget balances prudently. Every investment thereby involves <em>risk</em>, it's just the <em>financial backing</em> of the <em>government financial</em> <em>instruments</em> which makes them less risky as compared to the other financial instruments.