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murzikaleks [220]
3 years ago
5

A common reason for redeeming a bond prior to its maturity date is ______.

Business
1 answer:
Veseljchak [2.6K]3 years ago
4 0

Answer:

Correct option is (c)

Explanation:

Market interest rate and price of the bond are inversely related.if market interest rate falls and is lesser than stated interest rate (coupon rate), then the bond becomes attractive and its price increases. So, bond can be solved at present higher than the maturity value. This is the reason bond is redeemed before maturity.

On the other hand, if market rate increases, bond becomes less attractive as investors can earn more by investing at market interest rate. So price of bond falls and there is no point redeeming it before maturity.

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"Imagine you own a successful startup company that’s been doing well for several years. You think you can grow your company if y
Lapatulllka [165]

Answer:

Going from private company to public company

Explanation:

This will help the startup to boost its industry connections and get involved in the redefining the company's future with wider access to finance that comes by listing the organization in stock exchange. Stock exchange provides a pool of investors that are willing to invest in your company.

Going public will give the company wider access to industry, expansion options, suppliers redefining, etc. All this will be possible by the wider industry connections.

7 0
3 years ago
The market equilibrium A. occurs only when consumer surplus exceeds producer surplus. B. minimizes the profit of the market beca
BabaBlast [244]
D)
Market equilibrium occurs when supply = demand
8 0
3 years ago
If the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as a(n) ________. If the lessor m
DENIUS [597]

Answer:

Sales type lease, direct financing lease, operating lease

Explanation:

A lease is a contractual agreement whereby the lessor(landlord) is paid for the use of his or her assets/properties by the lease(tenant). The assets that are usually leased are vehicles, buildings etc where payment is made for a specified period.

Sales type lease. Here, the dealer(landlord) earn interest revenue accrued plus the profit on the sale of asset. Whereas the profit is arrived at by deducting the selling price from the actual sales price . Profit is also earned and recognized at the beginning of the lease period.

Direct financing lease. The only benefit earned on this type of lease is the interest by the lessor-landlord. There is no profit or loss in the lease transaction. The actual value of leased asset is the same as the purchased value of the asset.

Operating lease is the combination of both sales type lease and direct financing lease. Here, the benefit of asset leased like yearly depreciation is claimed by the lessee-tenant . The ownership of leased asset must be transferred to the lessor at the end of agreed term subject to lessee having bargaining option. The lesse may however purchase the asset at a much reduced price say seventy five percent of the market value.

7 0
3 years ago
yle Co. has $1.1 million of debt, $3 million of preferred stock, and $1.2 million of common equity. What would be its weight on
Virty [35]

Answer:

0.22

Explanation:

Calculation for the weight on common equity

Using this formula

Weight of Common equity = Common Equity/(Debt + Preferred Equity+Common Equity)

Where,

Common Equity=1.2

Debt =1.1

Preferred Equity=3

Let plug in the formula

Weight of common equity = 1.2/(1.1+ 3+ 1.2)

Weight of common equity=1.2/5.3

Weight of Common Equity=0.22

Therefore the weight on common equity will be 0.22

3 0
3 years ago
accounting Which organization has the authority over the accounting and financial disclosures for companies whose shares of owne
Ivan

Answer:

Securities Exchange Commission (SEC)

Explanation:

Securities Exchange Commission (SEC) have a mission of protecting investors, ensuring a fair and efficient market, and encourage capital formation.

They monitor participants in the securities markets by ensuring there is disclosure of important information regarding the market, maintain fair dealing, and protect participants against fraud.

Therefore SEC has the authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public.

These measures are in place to protect investors.

6 0
3 years ago
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