Potential return has to do with the ability to receive a certain amount from an investment, while risk refers to the potential loss of the investment.
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:it is 0.09290304 m4
Explanation:
Answer:
The type of business risk that poses the greatest threat to a company's overall success is Competitive Risk.
Explanation:
Business risk threatens a company's ability to meet its target or achieve its financial goals. They could be caused by what you have control of such as operations and what you cannot control such as natural disaster and unfavorable government policy.
However, the greatest threat to a company's overall success is competitive risk.
Competitive risk is the chance that competitive forces will prevent you from achieving your overall business goal. It is often associated with the risk of declining business revenue or margins due to the actions of a competitor.
