The behavior that will typically lead to low credit score is <span>A. Maxed out credit cards
When people maxed out their credit cards, the credit card company will most likely to make additional charges before the balance is paid out. Maxed out credt cards would be interpreted as having uncontrollable consuming behavior and will result in low-credit card score.</span>
Lenders Require Insurance. ... Lenders require that you have insurance. Think about it: Mortgage lenders want proof of insurance before you buy or build a new building. In short, to get the money your business needs to keep going, it's likely you enjoy the benefits of insurance.
Answer:
YTM = 6.51%
YTC = 6.40%
Explanation:
We need to solve using excel goal seek or bond formulas to generate the yield (interest rate) which matches the future couponb and maturity payment with the current selling price of the bond:
Present value of the coupon
C 40.000 (1,000 x 8% / 2 payment per year)
time 28 (14 years x 2 payment per year)
rate 0.032529972 (generate using goal seek tool)
PV $727.8688
Pv of the maturity (lump sum)
Maturity 1,000.00
time 28.00
rate 0.032529972
PV 408.06
PV c $727.8688
PV m $408.0612
Total $1,135.9300
As this is a semiannual rate we multiply it by 2
0.032529972 x 2 = 0.065059944 = 6.51%
We repeat the procedure with changing the time and end-value to adjust for the callabe conditions:
C 40.000
time 14 (7 years x 2 payment per year)
rate 0.032015131
PV $445.6984
Maturity 1,073.00 (call price)
time 14.00
rate 0.032015131
PV 690.23
PV c $445.6984
PV m $690.2316
Total $1,135.9300
Againg his will be a semiannual rate so we multiply by two:
0.032015131 x 2 = 0.064030263 = 6.40%
Answer:
B. Are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.
Explanation:
Fractional reserves are when a certain fraction of total deposits with the banks are reserved and the remaining amounts over and above of these reserves are loaned out and made into money supply.
Bank panics are a risk of such a system as depending on public confidence level on banks, the public may crowd out the bank and people wish to withdraw their deposits, in this case banks only have a certain amount of reserve deposits and not all the money for all the depositors.
These runs on the bank are unlikely if the banking system is prudent and abides by central banking regulations.
Hope that helps.
Answer:
Organizational strengths
Explanation:
Organizational strengths, it is the resource or the capacity of the firm which is used effectively in order to accomplish or achieve the goals as well as objectives of the business.
The examples of the strengths of the business are large market share, good customer service, leadership in product innovation, strong employee attitudes and personal relationships with customers.
So, the capabilities and the skills which provide the organizational special competencies and the competitive benefits are known as the organizational strengths.