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IgorLugansk [536]
3 years ago
12

View each of the below-listed provisions that are often contained in bond indentures alone. Which of these provisions would tend

to REDUCE the yield to maturity that investors would otherwise require on a newly issued bond?1. Fixed assets are used as security for a bond.2. A given bond is subordinated to other classes of debt.3. The bond can be converted into the firm's common stock.4. The bond has a sinking fund.5. The bond has a call provision.6. The indenture contains covenants that restrict the use of additional debt.A. 1, 3, 4, 6B. 1, 4, 6C. 1, 2, 3, 4, 6D. 1, 3, 4, 5, 6E. 1, 2, 3, 4, 5, 6
Business
1 answer:
Contact [7]3 years ago
7 0
The answer would be
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To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

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