Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:
C. Predictive value.
Explanation:
Relevant information is able to make a difference in user decisions. To do so, it must have predictive value, confirmatory value, or both. Financial information has predictive value if it can be used as an input in a predictive process.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Jill:
Weekly deposit= $96.15
The number of weeks= 30*52= 1,560
Interest rate= 0.098/52= 0.00189
Joe:
Annual deposit= $5,000
Number of years= 30 years
Interest rate= 9.8%
To calculate the final value of Jill and Joe, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= weekly/annual deposit
<u>Jill:</u>
FV= {96.15* [(1.00189^1,560)-1]} / 0.00189
FV= $916,853.88
<u>Joe:</u>
FV= {5,000*[(1.098^30)-1]} / 0.098
FV= $791,953.50
He is particularly grateful for CAFTA-DR, a trading bloc. he Central America Free Trade Agreement (CAFTA-DR), which includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States, is intended to reduce tariffs and other barriers to free trade.
First three together in the first I think
