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nevsk [136]
4 years ago
8

These bonds are collateralized securities with first claims in the event of bankruptcy. These bonds are not backed by any physic

al collateral. They are backed by the reputation and creditworthiness of the issuing company. These bonds are considered the riskiest of all corporate bonds and thus offer the highest interest rates.
Business
1 answer:
nasty-shy [4]4 years ago
3 0

Answer:

Subordinated debentures - Ranks the lowest in terms of priority with regards to claim on assets, is the riskiest of all. Higher the risk, higher would be the return offered on the bond.

Debentures - These bonds are those which are not backed by any collateral. Issued by both corporations as well as governments, debentures are backed only by the general creditworthiness and reputation of the issuer.

Senior Mortgage Bonds - 'Senior' means they rank high in terms of claims on assets and 'Mortgage' implies they are backed by collateral.

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1. The payment made each period on an amortized loan is constant, and it consists of some interest and some principal.
AveGali [126]

Answer:

True

true

Explanation:

for  both of these questions the answers are true. the loan repayment is made up of the prncipal and the interest. This is due to the fact that as the amout of the loan outstanding gets to be repaid, the remaining principal balance would be decreased too and the interest that is associated will also be decreased too with time. The payment principal amount is going to be bigger while the interest would be smaller.

6 0
3 years ago
In this firm commitment offering who bears the financial risk? Who would bear the risk in a best efforts offering?
shepuryov [24]

An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.

Answer:

In a firm commitment offering, the investment banker bears the financial risk and buys the securities from TWResearch to sell to the public at its own terms.

In a best efforts offering, TWResearch, Inc. bears the financial risk and only makes its best efforts to sell the securities without buying them from TWResearch.

Explanation:

With a firm commitment offering, the investment banker enters into an agreement to purchase all the securities from TWResearch at an agreed price, and then, commits itself to selling the securities to the public at its own chosen price.  As it pockets the ensuing gain or loss, the investment banker bears all the financial risk.  With a best efforts offering, the investment banker does not assume inventory risk, but makes its best efforts in selling the securities. TWResearch bears the residual financial risk since the underwriter forwards to TWResearch all  the proceeds from the issue, after deducting its commission.

6 0
3 years ago
Victor Malaba has a net income of $1,240 per month. If he spends $150 on food, $244 on a car payment, $300 on rent, and $50 on s
Volgvan

Answer:

40%

Explanation:

Given:

Net income of Victor Malaba = $ 1,240 per month

Amount spend on food = $150

Amount spend on a car payment = $244

Amount spend on rent = $300

Amount for savings = $50

Thus,

Total expenses = $ 150 + $ 244 + $ 300 + $ 50 = $ 744

the total amount left after the above expenses = Net income - The total expenses

or

The amount left = $ 1,240 - $ 744 = $ 496

Therefore, the percentage of net income that can he can spend on other things = \frac{496}{1240}\times100%

or

The percentage of net income that can he can spend on other things = 40%

6 0
3 years ago
Which of the following situations represents an economic problem? a) A student trying to decide how to spend his weekly allowanc
enot [183]
<h2>Both situations are examples of an economic problem.</h2>

Explanation:

Let us understand the term "economic problem"

Though the expectation of the people are endless, the "resources available" to satisfy the need is limited. This causes the "economic problem".

A student trying to decide how to spend his weekly allowance:

The need of student may be endless but still he is in a position to decide only based on the amount which he has to spend. He needs to prioritize the needs and then spend accordingly.

A country choosing to sacrifice some privacy to gain more security:

Under a compelled situation, the country has to sacrifice the privacy and then have to gain security. The loss due to negotiation of privacy is for sure and this leads to economic problem.

5 0
3 years ago
You are the manager of Local Electronics Shop (LES), a small brick-and-mortar retail camera and electronics store. One of your e
Shkiper50 [21]

Answer:

The correct answer is No, because due to intense producer-producer rivalry.

Explanation:

In economics, competition means rivalry of competition between companies that participate in a market that apply better strategies so that they can minimize their costs, maximize their profits and thus remain active and innovative vis-à-vis other companies.

With this, it seeks that the economic agents strive to improve the use of resources to produce goods and services, and to improve and innovate in the quality and variety of these, with the purpose that results in improvements in competitiveness and more benefit for the consumer , all this to achieve greater economic growth and social welfare.

5 0
3 years ago
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