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jeka94
3 years ago
8

Suppose your company needs to raise $68 million and you want to issue 20-year bonds for this purpose. Assume the required return

on your bond issue will be 4.4 percent, and you’re evaluating two issue alternatives: A semiannual coupon bond with a coupon rate of 4.4 percent and a zero coupon bond. Your company’s tax rate is 24 percent. Both bonds will have a par value of $1,000. How many of the coupon bonds would you need to issue to raise the $68 million?
Business
1 answer:
e-lub [12.9K]3 years ago
6 0

Answer:

you would need 68000 of the coupon bonds to issue to raise the $68 million.

Explanation:

price of the coupon bond = $1000

number of coupon bond = $68 million/1000

                                          = 68000

Therefore, you would need 68000 of the coupon bonds to issue to raise the $68 million.

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Consider the wealth effect, interest rate effect, and international trade effect. Of these, the ________ effect is the most sign
Grace [21]

Consider the wealth effect, interest rate effect, and international trade effect. Of these, the wealth effect is the most significant and the international effect is the least significant.

<h3>What is the wealth effect?</h3>

This is the theory that states that people spend more money on commodities as they experience an increase in their wages.

<h3>What is the international effect?</h3>

This is the theory that the given differences that exist in nominal interest rate of countries is useful for prediction of changes in interest rate.

Read more on wealth effect here; brainly.com/question/26960365

3 0
2 years ago
Ok, I actually need a lot of help- 30 points to whoever can
Olin [163]

Answer:

I would say that the answer is "recording information about a fraudulent business".

Explanation:

His job is to make sure that consumers are treated fairly.

4 0
2 years ago
The consumer's level of involvement can lead to two types of buying decisions: __________ or
Olenka [21]

Answer:

The consumer's level of involvement can lead to two types of buying decisions: limited problem solving or extended problem solving

Explanation:

limited problem solving:

It is a problem solving process in which customer is only willing to put very little effort to make a purchase decision in order to fulfill his want or need. Purchaser uses simple decision rules for reaching a a purchase decision with minimal research done. He is not much concerned about the best solution and has limited resources and time for searching information and assessing each alternative thoroughly.

For example: you need a new pair of joggers for gym.  You are already have an idea about joggers and know about new available materials and attributes. So you might do a bit research online and come to a decision comparatively quickly. You might consider your favorite outlet instead of searching for the joggers at every outlet. So you take buying decision limiting involvement in this process.

extended problem solving

In this process the costumer attempts to collect as much information as possible, and thoroughly assess and evaluate product alternatives. So in this situation buyer don't have much idea about the product brands, attributes and characteristics to access the product. Purchaser will research, differentiate and put a lot of effort for taking best buying decision that will fulfill his needs. prior to purchasing the product, he might visit various outlets, research online, search for reviews and suggestions, take information from outlet staff. about the product Marketer should provide with such information to customer.

For example high value items like car, a house etc. Such items are not purchased often so the consumer will invest a lot of time in research and comparison in order  to take the best decision.

6 0
3 years ago
Legislates and enforces regulations that
Nikolay [14]

Answer:

Environmental Protection Agency

Explanation:

Out of all of the choices, the Environmental Protection Agency is the only administration that focuses on the protection of the environment, which would include the reduction of pollution, through protecting the air, water, and land.

OSHA and the FDA work to protect consumers and people in the workforce.

The SEC works with small businesses and investors.

8 0
3 years ago
Assume that the yen/dollar exchange rate quoted in London at 3:00 p.m. is ×120 = $1, and the New York yen/dollar exchange rate a
Viefleur [7K]

Answer:

This question lacks answers

A. currency swap.

B. arbitrage.

C. backwardation.

D. straddle.

<u>The answer is </u><u>b.</u>

Explanation:

Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.

The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).

In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)

8 0
3 years ago
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