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Alecsey [184]
3 years ago
15

Which of the following possible provisions of a bond indenture is designed to ease the burden of principal repayment by spreadin

g it out over several years?
a. callable feature
b. convertible feature
c. subordination clause
d. sinking fund
Business
1 answer:
Kazeer [188]3 years ago
8 0

Answer:

d. sinking fund.

Explanation:

A bond refers to a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

A sinking fund is a provision of a bond indenture which is designed to ease the burden of principal repayment by spreading it out over several years.

<em>Hence, a sinking fund is generally viewed or assumed to protect the bondholders such as creditors or investors because the fund set aside would serve as a collateral incase the bond issuer can't pay in the future. </em>

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A decrease in​ "financial frictions" is associated with​ ________.
qaws [65]

Answer:

The correct answer is option E.

Explanation:

Financial frictions in the process of making transactions, it refers to the stickiness involved in the process of making transactions. It includes the time, money and efforts that are involved in gathering information and making a transaction.  

Institutional reforms can help in reducing financial frictions. A decrease in financial frictions will make transactions easier.  

It will help in increasing planned investment spending. The financial markets will be able to function more efficiently.  

The cost of borrowing for business will decrease, this will increase investment expenditure.  

The credit spread or difference between yields from a government bond and some other bond with the same maturity will decrease.

8 0
3 years ago
Which characterizes the free-market system as consumers influence producers and producers influence consumers? A. a built-in pro
DochEvi [55]

Answer:

C. a circular flow of influences

Explanation:

The free market system is an economic system in which the prices for products and services is decided by supply and demand without the intervention of the government. As this system is based in the supply and demand, this forces infuence each other which generates a circular flow of influence. According to this, the answer is that the free market is characterized by a circular flow of influences.

5 0
3 years ago
Give 3 sample of best practice, how airline can improve "Cost" efficiency?
valentina_108 [34]

It is called "cost efficiency" to the way in which a company, through specific commercial organization actions, manages to reduce the costs necessary to obtain a certain profit.

Thus, they seek to minimize the costs and operational losses of the company, with the aim of maximizing profits.

In this way, 3 ways in which an airline could increase its cost efficiency are:

  1. fly to places with high demand, reducing presence in not so popular destinations.
  2. reduce the time on the ground for each plane, so that it generates money almost constantly.
  3. perform optimal maintenance on each plane, to avoid breakages.

Learn more about efficiency in brainly.com/question/6672666

3 0
3 years ago
U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is
Andrews [41]

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky

4 0
4 years ago
Ed is a self-employed heart surgeon who has incurred the following reasonable expenses:$1,000 in air fare to repair investment r
lyudmila [28]

Answer:

A. $1,300 "for AGI.

Explanation:

The computation of the deductible amount is shown below:

= Air fare to repair investment rental property + 50% × (Meals + tickets to a football game with hospital administrators)

= $1,000 + 50% × ($500 + $100)

= $1,000 + $300

= $1,300

For meals and tickets, 50% deduction is applicable whereas for the air fair full deduction is applicable

And, for investment in seminar no deduction is allowed

6 0
4 years ago
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