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laila [671]
3 years ago
7

A high coupon bond is likely to be called by the issuing firm if (a) required yields rise. (b) it has a high call premium. (c) i

t has a low rating. (d) required yields fall. (e) its interest is tax free.
Business
2 answers:
Afina-wow [57]3 years ago
8 0

Answer: (d) required yields fall.

Explanation

Higher Coupon rate Callable bonds are at risk of being recalled by an issuer when required yields fall.

Usually, the new Issuer would have to pay a rate that mirrors the current interest rate. If it is high, their payments will be high, low and vice versa.

They figured though that instead of paying high interest even when interest is low, they could just recall the bond and reissue another one that reflects a low interest rate.

This is therefore now a very widespread practice.

If Required Yields fall, there is a chance of the bond being recalled.

If you need any clarification please feel free to comment or react. Thank you.

monitta3 years ago
6 0

Answer:

Correct option is D

Explanation:

Required yields falls.

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A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an inco
vichka [17]

Answer:

1. True

Explanation:

Vertical analysis the the percentage calculation of each item of Income statement with Gross revenue. We calculate the percentage of Gross margin which is the percent of Gross income and gross sales. Just like this the COGS to sales, Net income margin, operating income margin and operating expenses to sales ratio are calculated in vertical analysis to check the sensitivity of each part of the income to the gross income.

Ye it is true that A vertical analysis calculates percentages to compare the parts of an individual statement to the whole. For example, on an income statement, each item could be shown as a percentage of net sales.

7 0
3 years ago
what is investor sentiment? the stock market's attitude towards specific stocks, industries, or market conditions technical info
Zanzabum

The broad prevalent opinion of investors regarding the anticipated price development in a market is known as market sentiment, often referred to as investor sentiment.

<h3>What does investing emotion entail?</h3>

Market sentiment, commonly referred to as investor sentiment, describes the broad perspective or attitude of investors toward a certain securities or the entire financial market. The general price patterns are where market participants' optimism or pessimism is most readily apparent.

<h3>How are investors feeling right now?</h3>

US Investor Sentiment,% Bullish is at 24.47%, down from last week's 28.86% and this year's 33.81%. This is less than the historical average, which is 37.64%.

Learn more about Market sentiment here:

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5 0
10 months ago
All of the following are reasons to use an estimated method of costing inventory except: A. perpetual inventory records are not
morpeh [17]

Answer:

The answer is: B) purchase records are not maintained.

Explanation:

There are two methods for estimating inventory costs:

  1. Gross Profit Method : uses the information from the income statement. If operating conditions remain similar, the proportion between total sales, profits and COGS should be similar (lets say profit is 30% and COGS is 70% of total sales). You can estimate your inventory costs by using the information on total sales.  
  2. Retail Method: It is used mostly by merchandising firms (retailers) that have consistent mark-ups. You have to determine the proportion between cost and retail price (lets say the COGS is 80% of the retail price). Then if you are given the retail inventory, you can determine the COGS using the proportion determined previously.

8 0
3 years ago
Lori had a great day at work and has a positive attitude. When she arrives home, she maintains this positive attitude and is in
kondaur [170]

Answer:

b. work-family enrichment

Explanation:

Based on the scenario being described within the question it can be said that in this situation Lori is experiencing the concept of work-family enrichment. This term refers to when an individual's experience in what role of their lives improves the quality of life in another role. Such as in this scenario Lori's great experience at work improved her attitude in her family environment and role as a mother.

8 0
3 years ago
The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a
Citrus2011 [14]

Given Information:

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $2 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete the development?

Answer:

Yes, because the total loss would then be $3 million rather than $5 million. The most you should pay to complete the development would be $2 million.

Explanation:

Every product or service that is marketed or is related against, and competitive with, a product or service created or produced by Fiserv or manufactured or distributed. Competitive Product or Service

In the end demand for the product declines due to the exhaustion of supply and economies and new technologies and shifts in the preferences of the customer.

The projected benefit generated by the new product must be offset by the profits from expenses in the project appraisal.

5 0
3 years ago
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