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Alexxx [7]
2 years ago
12

When a financial instrument includes a _________ provision, allowing the issuer to the option to retire the financial instrument

prior to its maturity, the financial instrument generally carries a higher interest rate.
Business
1 answer:
Oduvanchick [21]2 years ago
8 0

Answer:

The correct word for the blank space is: callable.

Explanation:

A Callable Provision -typically referred when talking about bonds- is one that can be paid back to the issuer partially or in full before its maturity date. This provision allows the financial instrument issuer to replace higher than market instruments with ones lower.

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The price of cheddar cheese rises from $1 per pound to $2 per pound, and as a result, producers of cheese increase their product
Mazyrski [523]

Answer:

the arc price elasticity of supply is \frac{5}{2}

Explanation:

Given:

P1: $1 and Q1 = 5 thousand tons

P2:$2 and Q2 = 55 thousand tons

We need to find:

%ΔQ = \frac{Q2-Q1}{(Q1+Q2)/2} = \frac{55-5}{(55+5)/2} = \frac{5}{3}

%ΔP = \frac{P2-P1}{(P1+P2)/2} = \frac{2-1}{(1+2)/2} = \frac{2}{3}

As we know that, the arc price elasticity of supply :

E = %ΔQ  / %ΔP

<=> E = \frac{5}{3} /\frac{2}{3} = \frac{5}{2}

4 0
3 years ago
Happy lion is considering investing ina project whose eisj is greater than the firm's current risk level based on
Doss [256]
The things that decision maker should consider in this situation is to <span>Increase the cost of capital used to evaluate the project to reflect its higher-than-average risk.
In budgetinng process, the decision maker need to make sure the cost that potentially incurred for the company because of the higher risk.
If, after including all that the potential benefit still outweight the potential risk, then they could move forward with the investment.</span>
3 0
2 years ago
A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesp
Vlad1618 [11]

Answer:

Mary can cancel the transaction at any time before midnight of the third business day thereafter.

Explanation:

If she is having second thoughts about the deal , then Mary can cancel the transaction at any time before midnight of the third business day thereafter this is due to the fact that Mary may exercise the right to rescind or cancel the transaction until midnight on the third day after the transaction. She can cancel the deal at no cost to herself within 3 days of closing.

8 0
2 years ago
Which of the following describes a position trade? A. Buying a security into inventory directly from a customer with a mark-down
mylen [45]

Answer:

B. After receiving a buy order from a customer, the dealer then purchases the stock into inventory and resels to the customer

Explanation:

Position trade has to do with anticipating an increase in market price by purchasing some stocks for keeps such that one sells when prices are higher.

In another sense, it is purchasing stocks when one is certain of selling them such purchasing based on existing client's demand for the stock as contained in option B.

4 0
3 years ago
The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share
Nadusha1986 [10]

Answer:

Stars are companies that possibly have a huge growth potential. This potential comes from being in a market that is growing rapidly, but at the same time, the division or products has a significant market share. It is basically the best scenario since the market is growing, the company's market share is growing, and profits should also be growing.

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2 years ago
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