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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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Bond [772]

Answer:

The correct answer is False.

Explanation:

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There are several reasons for a company to decide to invest in another country. Almost all the arguments that have been offered for the existence of FDI can be grouped under three basic objectives: the attempt to participate in new markets, increase production efficiency through cost reductions and the attempt to exploit certain strategic assets. Next we will explain in more detail each of these three objectives.

3 0
3 years ago
Makers Corp. had additions to retained earnings for the year just ended of $285,000. The firm paid out $180,000 in cash dividend
bogdanovich [222]

Answer:

Price-Earning ratio = 6.42

Price to Sales Ratio = 1.35

Explanation:

Earning for the year = $285,000

Common stock outstanding = 150,000 shares

* Price has not been given in the question. Assuming $70 is the market price of the share.

1.

Earning per share =  Earning for the year / Common stock outstanding

Earning per share = $285,000 / 150,000 = $1.90 per share

Price-Earning ratio = $7 / $1.90 = 6.42

2.

Price to Sales Ratio = Price / Sales = $7 / $5.19 = 1.35

5 0
3 years ago
Xcel when intentional concealment is involved, what course of action is the injured party entitled to?
mafiozo [28]

Rescission of the contract, which is cancelling the contract and making the parties as close to how they were before the contract started as possible.

8 0
3 years ago
What effect do my communication skills have on my ability to pursue, obtain and excel at my job?
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Describe some of the mistakes americans often make when it comes to money
goldenfox [79]
Some of the mistakes that we made are:
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8 0
4 years ago
Read 2 more answers
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