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swat32
3 years ago
7

Bond Features Maturity (years) 5 Face Value = $1,000Coupon Rate = 5.00%Coupon dates (Annual) Market interest rate today 5.00%Tim

e to call (years) 3 Price if Called $1,050.00Market interest rate in Year 3 is 2.00% The above bond is callable in 3 years. When the bond is issued today, interest rates are 5.00% . In 3 years, the market interest rate is 2.00% . Should the firm call back the bonds in year 3 and if so, how much would the firm save or lose by calling back the bonds? a. yes it should call back the bonds, it will save $8.25b. yes it should call back the bonds, it will save $7.83c. no it should not call back the bonds, it will lose $7.83d. yes it should call back the bonds, it will save $8.49e. no it should not call back the bonds, it will lose $8.25f. no it should not call back the bonds, it will lose $8.49
Business
1 answer:
german3 years ago
5 0

Answer:

it should call back the bonds as it will save $8.25

Explanation:

Bond Price can be calculated using PV function. After 3 years,

N = 2, PMT = 5% x 1000 = 50, FV = 1000, I/Y = 2%

=> Compute PV = $1,058.25

Without the call option, the bond would be worth $1,058.25. But the firm can buy those bonds at $1,050.

Hence, it should call back the bonds as it will save $8.25

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Select the correct statement about performance appraisals and pay reviews.
nataly862011 [7]

Answer:

C. Many companies review pay during a performance appraisal.

Explanation:

Performance appraisals are usually ongoing through out the year where as annual reporting is done on it. It allows for better decisions by the management whether if to revise pay scales as per the improved performances of the employees. These appraisals may be used for identify training needs, pay reviews and promotional opportunities for employees.

Hope that helps.

8 0
4 years ago
What allows every department of a company to store and retrieve information in real-time, allowing information to be more reliab
Dmitry_Shevchenko [17]
<span>The company depends on their company database when it comes to the storage and retrieval of important information in real time. This allows the company to have information which is reliable and accessible. The database of the company is a collection of data that is saved and organized to allow the user s to have its easy retrieval in times that they want to use or utilize it. The collection of information includes schemes, tables, queries, reports, views and other objects.  The maintenance and accessibility of the database will need the company to have DBMs or Database Management System.  The use of this system is to make sure that the data stored is safe and secured. </span>
5 0
3 years ago
Walt consumes strawberries and cream but only in the xed ratio of three boxes of strawber-
Tcecarenko [31]

Answer:

(d) Walt demands 12 boxes of strawberries.

Explanation:

For every 3 box of strawberries, Walt consumes 2 box of cream

=> For every 1 box of strawberry, he will consumer 2/3 box of cream

Suppose, he consumes X boxes of strawberries, then he must consume (2/3)*X boxes of cream

Cost = 10*X + 10*(2/3)*X = 200 = Income

=> 10X + 20X/3 = 200

=. 30X + 20X = 600

=> 50X = 600

=> X = 12

4 0
3 years ago
The cash flow statement should be evaluated by examining the cash flow pattern suggested by the:__________
galina1969 [7]

Answer:

a) subtotals of each of the three main sections.

Explanation:

A cash flow statement is a representation of the cash inflows and outflows from various activities in a business. The three main sources of cash flow are operating activities, investing activities, and financing activities.

Operating activities include daily production activities that a business usually engages in like manufacturing or selling.

Financing activities are those that affect the capital base of the organisation.

Investing activities are those that involve purchase or sale of assets, and investment in securities.

To get a better knowledge of the cash flow of the organisation we will need to evaluate subtotals of each of these three sections

6 0
4 years ago
Which of the following is located at the point where the supply and demand curves intersect?
Karo-lina-s [1.5K]

Answer:

Equilibrium point

Explanation:

The point where supply curve intersects demand curve is known as the equilibrium point. At this point, the price of commodity supplied equals the price of commodity demanded. Also at this point, the quantity of commodity supplied equals quantity demanded for a commodity.

Thus, E = Qd = Qs

6 0
4 years ago
Read 2 more answers
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