1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helen [10]
3 years ago
9

An issuer decides to call in an outstanding bond issue under the terms detailed in the bond resolution because interest rates ha

ve dropped substantially after issuance. This type of call is a(n):________.
Business
1 answer:
tino4ka555 [31]3 years ago
6 0

Answer:

An optional Call

Explanation:

Callable Bond

Callable bond represents an instrument of debt where the issuer issues the instrument reserving the right to make a return of the principal of investors including the stoppage of interest payments before the date of maturity of the bond.

Organisations would usually issue bonds as callable when either to meet unexpected obligations like pay off other debts, fund expansions or when they sense that opportunities may arise in the future for them to get other forms of financing at lower interest rates.

For bonds to be callable the terms must be clearly stated in the bond's offering.

Optional Call

In optional call, the issuer reserves the right to call the bonds to take advantage of present circumstances such as significant drop in interest rates (as stated in the question). However, the terms detailed in the bond resolution will allow the bondholders to receive a premium to par as compensation for their loss of interest payments on the called bond.

Furthermore, a period of time must usually pass before the issuer can use the optional call.

You might be interested in
Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurre
tiny-mole [99]

Answer:

$43,745

Explanation:

Calculation for what the Capital account reported on the Statement of Owner's Equity at the end of the month would be

Using this formula

Ending Capital Balance = Cash (1)+ Photography equipment (2) +Cash for services provided (4)+Services to customers on account (6)- Monthly rent(7)- Utility (9)

Let plug in the formula

Ending Capital Balance = $13,800 + $23,000 + $6,000 + $3,050 - $1,800 - $305

Ending Capital Balance= $43,745

Therefore the balance in the Capital account reported on the Statement of Owner's Equity at the end of the month would be: $43,745

5 0
3 years ago
What steps did fdr take in response to the economic improvements of 1935 and 1936?
Kryger [21]
<span>In the first hundred days of his presidency, FDR knew that he would have to provide relief to the U.S. citizens, create jobs and stimulate the economy. His first step was to bring back the peoples confidence in banks. Next, he had to help local relief agencies. He convinced congress to establish the Federal Emergency Relief Agency which sent funds to agencies. The FERA put money into public work programs to support people who were out of work. FDR also established the Civilian Conservation Corps which help put men to work on cleaning up national parks.</span>
8 0
3 years ago
Superior Construction Co. was contracted to plaster all the buildings of a historical preservation project for $2,500,000 over t
Cerrena [4.2K]

Answer:

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

Explanation:

given data

historical preservation project = $2,500,000

time = 2 year

estimated costs = $2,000,000

Actual costs Years 1 = $800,000

Actual costs Years 2 = $900,000

to find out

what amount of gross profit would Superior report in Year 1

solution

we find here first Percentage Completion that is express as

Percentage Completion = Cost to date ÷  Estimated Total Cost  .............1

put her value we get

Percentage Completion = \frac{800000}{2000000}

Percentage Completion  = 40%

and

Revenue Recognized will be here

Revenue Recognized = Percentage Completion  × Total estimated Revenue   ...............2

Revenue Recognized = 40 % × 25000000

Revenue Recognized = 1000,0000

so here Gross Profit in Year 1  will be  

Gross Profit in Year 1 = Revenue Recognized - Cost to date of year 1   ..............3

Gross Profit in Year 1 =   1000,0000 - v800000

Gross Profit in Year 1 = $200000

so correct option is B. $200,000

3 0
3 years ago
Christy spent $500 over her budget on gifts during the holidays. in addition to her regular job, she took a part-time job at the
allsm [11]
5 weeks 500/(12x10) =4ish then round up
8 0
3 years ago
A majority of employees surveyed believe that a top manager who violated ethics policies at their company would be
andrezito [222]
They would be rebuffed and considered responsible. It lays out measures of moral conduct and expert lead workers are required to keep up interior and amid connections with customers and accomplices. An infringement of the code implies you have acted in a way that conflicts with the code. Doing as such prompts outcomes, as laid out in the archive.
4 0
3 years ago
Other questions:
  • A person who pays $4,500 in real estate property taxes and is in the 28 percent tax bracket, would reduce the amount paid for fe
    5·1 answer
  • how would you predict the survivorship curve of a developed country would compare to that of a developing country
    6·1 answer
  • Russia and china are both rich in natural resources and human resources, and both countries have a solid level of capital. yet,
    10·1 answer
  • A SWOT analysis involves an analysis of factors internal to the company, which include _____ as well as factors outside the comp
    8·1 answer
  • In 1972, one could buy a bag of chips, a pound of hamburger, a package of buns, and a small bag of charcoal for about $2.50. If
    7·1 answer
  • The bookkeeper for Sunland Company asks you to prepare the following accrual adjusting entries at December 31. (If no entry is r
    13·1 answer
  • Jules &amp; Associates had the following information available related to revenues and expenses for the current period: Services
    15·1 answer
  • The rule in Garner v. Murray deals with​
    11·1 answer
  • 8. The delta of a call option on a firm's assets is .624. How much will a project valued at $48,000 increase the value of equity
    6·1 answer
  • What are the potential risks of having all three of these buckets (savings, investments and debt payments) belong in the same ca
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!