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Fantom [35]
4 years ago
6

The term structure of interest rates is upward sloping for all bond types. A certain AAA-rated non-callable 10-year corporate bo

nd has been issued at a 6.15 percent promised yield. Which one of the following bonds probably has a higher promised yield? A) A non-callable AAA-rated corporate bond with a five-year maturity B) A callable AAA-rated corporate bond with a 15-year maturity C) A non-callable AAA-rated convertible corporate bond with a 10-year maturity D) A similar quality municipal bond E) All of these choices are correct.
Business
1 answer:
saul85 [17]4 years ago
6 0

Answer:

B) A callable AAA-rated corporate bond with a 15-year maturity

Explanation:

Base on the scenario been described in the question, a non- callable 10-years corporate bond has been issued at a 6.15 percent promised yield the bond which has higher promised yield will be a callable AAA-rated corporate bond with a 15-year maturity period. This is so because, it has a higher promised yield .

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A firm based in mexico has found its growth is restricted by the limited liquidity of the mexican capital market. what are the f
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The searching companies can work for equity or debt loans in order to raise money on global capital markets. The debt of a foreign institution, lender, and other debt suppliers is also an option to raise money in the capital market. As equity loans include the sale of equity to investors, the issue of bonds is part of debt loans. Capital costs are usually less than in the domestic market and the company can even borrow money from the bank. And enterprises need to be very careful to take into account the risk of adverse exchange rates because, if the peso is to be depreciated, they should be aware of the cost of acquiring the currency needed to repay a foreign exchange loan.

Moreover, foreign equity, floating foreign or Eurobonds offerings, or borrowing on the Euro currency markets may be considered by the Mexican firm. The euro currency market would then certainly provide the company with additional funding at a lower rate domestically. And if the peso decreases in the next 2 years, the company has to repay the credit in a different currency unless the company can use the future market. The value of euro currency loans would definitely be reduced.

We can recognize that the use of both foreign and euro bonds has the same disadvantages as the bonds have to be repaid in an anti-peso currency. The international bond market has important points that are worth considering, given the fewer regulations, disclosure requirements, and fiscal implications if the currency risk can be properly analyzed and minimized. Since the foreign equity market requires no payment to its stockholders and also has the greatest independence from its actions, it is perhaps the most attractive for the company. So, if the hesitations are to be overcome, investors will likely have loan strong growth prospects.

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5 0
1 year ago
In the long run the prices charged by a firm in monopolistic competition will be
kumpel [21]

Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".

Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.

In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.

6 0
3 years ago
Parents may claim a $2,000 child tax credit for a dependent child who is 22 years of age at the end of the year if the child is
Nataliya [291]

Parents may claim a $2,000 child tax credit for a dependent child who is 22 years of age at the end of the year if the child is a full-time student. The Child Tax Credit is a refundable tax benefit claimed by filing Form 1040 claim a tax credit of $2,000 per qualifying dependent child under age 17

<h3>What is Child Tax Credit?</h3>

Different nations offer parents with dependent children a tax advantage known as the child tax credit (CTC). The credit is frequently correlated with the number of dependent children a taxpayer has, as well as occasionally with their income. For instance, only families in the United States who earn less than $400,000 year are eligible to get the entire CTC. Similar to the United States, only families earning less than £42,000 a year are eligible for the tax credit in the United Kingdom.

The federal child tax credit (CTC) in the United States is a tax credit that is only partially refundable for parents of dependent children. Subject to an earned income level and phase-in, it offers $2,000 in tax relief per eligible kid (with up to $1,400 of that amount being refundable).

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8 0
1 year ago
If a salesperson sells 34 pairs of jeans, 126 t-shirts, and 40 jackets, what fraction of the total number of items sold do the j
tino4ka555 [31]

Answer:

1/5

Explanation:

34 + 126 + 40 = 200

40 jackets so 40/200

40/200 = 1/5 or one fifth

8 0
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