Answer:
Price of bond = $ 924.50
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>
Value of Bond = PV of interest + PV of RV
The price of the bond can be worked out as follows:
Step 1
PV of interest payments
annul interest payment = 6.4 % × 1,000 = 64
Annual yield = 7.5%
Total period to maturity (in years) =10
PV of interest =
64 × (1- (1.075)^(-10)/)/0.075= 439.30
Step 2
PV of Redemption Value
= 1,000× (1.075)^(-10) =
485.19
Step 3
Price of bond
439.30 + 485.19 =$924.49
Price of bond = $ 924.50
Answer: B. Maintaining a steady dividend is a key goal of most dividend-paying companies.
Explanation:
Companies that pay dividends prefer in general, to maintain a steady dividend overtime. This does not necessarily mean that they will pay the same amount of dividend but rather that they will pay out dividends as within a certain percentage range of the net income.
Companies do not prefer to cut dividends so as not to send the wrong message so A is wrong. Share repurchases reduces agency costs so C is wrong. Short term fluctuations in cash flow are not the key favor in determining dividend policy as the company might still pay out the same regardless so this is wrong as well. Option B is the best answer.
Answer:
(C) Where a particular event has affected the desirability of the property
Explanation:
A stigmatized property is one that has been psychologically impacted by an event that occurred on the property or one that has been suspected to have occurred on that property. Such a property is now "stigmatized" because such an event will have a drastic effect on multiple values and aspects of the property.
<span>In Chapter 7 bankruptcy, liquidation, the trustee sells off the debtor's assets and pays creditors. A Chapter 7 bankruptcy often turns into a Chapter 13 which is based around selling debt off to pay creditors. Selling off the assets and liquidating them gives them cash on hand to pay off what needs to be paid. </span>
<span>"a 3/1 ARM" means starting at a fixed interest rate for the first 3 years and the interest rate will adjust every year after the first three years up to the part where it mentions a "3/9 cap". This on the other hand tells us that the increase will be 3% each time there is an interest rate increase and the max increase is 9%. Hence the answer is 9%</span>
