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topjm [15]
3 years ago
15

Wald Inc.'s bonds currently sell for $1,120 and have a par value of $1,000. They pay an $85 annual coupon and have a 20-year mat

urity, but they can be called in 5 years at $1,050. What return would an investor most likely earn, if interest rates remain at current levels for the foreseeable future
Business
1 answer:
ella [17]3 years ago
5 0

Answer:

A. 7.08%  

B. 6.49%  

C. 5.95%  

D. 6.71%  

E. 7.34%

The correct option is B,6.49%

Explanation:

The return that the investor would earn is the yield to maturity of the bond which is calculated using rate formula in excel as shown thus:

=rate(nper,pmt,-pv,fv)

nper is the number of coupon payments the bond would receive which 5 since the bond can be called in 5 years

pmt is the annual coupon of $85

pv is the current market price of $1,120

fv is the call price in 5 years which is $1,050

=rate(5,85,-1120,1050)=6.49%

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creativ13 [48]

Answer: C. No, but he is liable for another $2 per share.

Explanation:

A stock is not to be issued below its par value as this is the lowest price that it is to be issued at. If a par value is $4 for instance, the stock cannot be issued for anything less than this $4.

In this scenario, the par value is $8 per share which means that Globule Inc. cannot issue this share for less than $8. Kirby in paying only $6, is still liable for $2 so that he can at least pay for the stock at its par value.

8 0
3 years ago
The difference between the small business owner and the entrepreneur is that the entrepreneur:A. manages the businessB. files ta
Oksanka [162]

Answer:

E. is accurately described by all of the above

Explanation:

  • The main difference is that the entrepreneurs took at the big picture and are more ideal,  innovative and risk-takers and focuses more on the startups and growth and spread of business and attempts to make profits
4 0
3 years ago
Decisions today are becoming _____ complex, due to _____ uncertainty in the decision environment. Question 25 options: 1) less,
denis-greek [22]

The answer is option 4 more and increased.

Explanation:

Decisions today are becoming more complex, due to increased uncertainty in the decision environment.

Decision making is planning, organizing, directing and controlling the functions of a manager at achieving organizational goals.

It provides more information and alternatives, improves the quality of decisions and helps in strengthening the organization.

In the decision phase of the decision making process the managers construct a model that reduces the problem. The decision rights identify and define the framework for how they will be made through operating process and support tools.

6 0
4 years ago
West Side Medical Supply is in trouble. In the past two years, Fred Schultz, the owner, suddenly lost 26 percent of his business
Alexus [3.1K]
Fred Schultz, the owner of the West Medical Supply had lost 26 percent of his business. The cause of the lost was because of the two drug stores and close local hospital. In order for Fred to redeem his lost and to gain more, he needs to do some research on demographic changes. By this, he may be able to determine the population and to figure out where and how he can go through with his business.
Answer: D
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4 years ago
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Answer:

Diverisify

Explanation:

The best option would be to diverisify between various things. Part into a promising crypto such as Ethereum or Bitcoin. Part into some basic index funds such as the SPY (S&P500), some bigger tech companies such as Apple and finally a more risky investment into a stock or crypto which is only in the beginning of its age. If you would like protection against a crisis or similar you could buy some Put options for your stocks.    

3 0
3 years ago
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