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krok68 [10]
3 years ago
6

A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 yea

rs at par. On the customer's confirmation, the dollar price quoted must be based on:
Business
1 answer:
jarptica [38.1K]3 years ago
8 0

Answer: 10 years to call

Explanation:

Maturity period = 25 years

Coupon rate = 7%

6.25% basis is,

  • Callable in 10 years at 103
  • Callable in 15 years at 102
  • Callable in 20 years at par

This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.

Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.

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Jackson motors tells sue, a consumer, that bliss automobiles are made with metal bodies when they are in fact made of fiberglass
Step2247 [10]

Jackson motors tells sue, a consumer, that bliss automobiles are made with metal bodies when they are in fact made of fiberglass. This would be considered a fraudulent misrepresentation.

Under contract law, a plaintiff can recover compensatory damages against any defendant when the court finds that the defendant has committed  a fraudulent misrepresentation. Courts will  find that a defendant has committed a fraudulent misrepresentation when following factors have been met:

a representation was made by the defendant, the representation  which was made was false

that when it is made, the defendant knew that the representation made by him was false.

that the fraudulent misrepresentation was made with the intention so that the plaintiff rely on it.

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8 0
1 year ago
The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2900 units, the actual direct
pashok25 [27]

Answer:

$5400 Favorable

Explanation:

Standard 2 hour at $15 per hour

Standard hours 2 hour per unit * 2900 units = 5800 hours

Total Standard cost = 5800 hours * $15 per hour =  $87,000

Actual hours = 5100

Actual cost = $81600 / 5100 hours = $16 per hour

Variance = Standard - Actual

Labor hour Variance Favorable = 700 hours (5800 hours - 5100 hours)

Total Labor variance = $5400 ($87,000 - $81,600)

4 0
3 years ago
A domestic company creates a strategic partnership with a foreign company in order to enter a foreign market. Both companies sha
Masja [62]

When two companies come together strategically to operate is called a joint venture.

<h3>What is a Joint Venture?</h3>

A Joint simply put is when two separate entities or business agree to share resources with the aim of archeiving similar or one objective.

Mostly, this is carried out when a  company intend to enter a foreign market.

Learn more about joint venture here:

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6 0
1 year ago
Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita
Pavlova-9 [17]

Answer:

Annual synergy gain = $ 178,500

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Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million

Annual synergy gain = 2.1 *.085 = .1785 million or $ 178,500

Annual synergy gain = $ 178,500

3 0
3 years ago
Does the National Labor Relations Act give an employer the right to plead with workers to
trapecia [35]

The national labor relation act is the act formed by the government to protect right of employers and the employees.

<u>Explanation:</u>

The National Labor Relations Act of 1935 is a primary rule of United States work law which ensures the privilege of private part employees to sort out into worker's guilds, participate in aggregate haggling, and make aggregate move, for example, strikes.

Congress sanctioned the National Labor Relations Act ("NLRA") in 1935 to secure the privileges of representatives and bosses, to energize aggregate dealing, and to shorten certain private area work and the executives rehearses, which can hurt the general government assistance of laborers, organizations and the U.S. economy.

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