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lora16 [44]
3 years ago
7

An investor holds a 6% callable bond purchased at 105. If the issuer calls the bond before maturity, the yield to call (YTC) rea

lized by the investor would be A) equal to the yield to maturity (YTM). B) less than the coupon. C) greater than the yield to maturity (YTM). D) greater the current yield (CY).
Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer: less than the coupon

Explanation:

When a bond that is bought at a premium of 205 is called before the bond matures by the issuer, this implies that the accelerated premium loss will have to be reflected in calculated yield to maturity.

It should also be noted that the YTC is the lowest among the yields for the premium bonds. Therefore, if the issuer calls the bond before maturity, the yield to call (YTC) realized by the investor would be less than the coupon.

Option B is correct.

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hichkok12 [17]

Inspire employees and clarify their vision. Find new and innovative ways to produce and deliver goods and services.

The main function of front-line managers is to oversee departments and employees. According to Lumen Learning, they are responsible for ensuring that the team achieves the goals of the organization.

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7 0
2 years ago
You are the CEO of a company that has to choose between making a $100 million investment in either Russia or Poland. Both invest
dimulka [17.4K]

Answer: When assessing the risks of investment, one should consider the political, economic, and legal risks of doing business in either Russia or Poland. The risk in Russia would probably be considered higher than the risk in Poland since Poland has been a member state of the European Union since 1 May 2004, with the Treaty of Accession 2003 signed on 16 April 2003 in Athens as the legal basis for Poland's accession to the EU.

Poland has already gained benefits and stability offered by the EU. Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership.

Explanation: A diligent investor wouldn't put a penny in a risky country.

8 0
3 years ago
Regular moderate exercise correlates with increased health, both physical and mental. Exercise friendly communities have LOWER r
nordsb [41]

Answer:

Obesity

Explanation:

7 0
2 years ago
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m
loris [4]

Answer:

The overhead for the year was $130,075

Explanation:

GIVEN INFORMATION -

                                                    ESTIMATED                              ACTUAL

Manufacturing overhead            $132,440                                   $128,600

Machine hours                             2800                                           2750

Here for calculating the overhead for the year we will use the following formula =      

\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours

= \frac{\$132,440}{2800}\times 2750

\$47.3\times 2750 = \$130,075

Therefore the overhead for the year was $130,075

                                   

5 0
3 years ago
Read 2 more answers
France and England both produce cheese and cloth under conditions of constant opportunity costs. France will have a comparative
dem82 [27]

Answer:

D

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

For example, England produces 10 yards of clothes and 5 kg of cheese. France produces 5 yards of clothes and 10 kg of cheese.  

for England,  

opportunity cost of producing clothes = 5/10 = 0.5

opportunity cost of producing cheese = 10/5 = 2

for France,  

opportunity cost of producing cheese = 5/10 = 0.5

opportunity cost of producing clothes = 10/5 = 2

England has a comparative advantage in the production of clothes and France has a comparative advantage in the production of cheese

5 0
3 years ago
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