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faltersainse [42]
3 years ago
12

Which of the following statements regarding corporate bonds is most correct? a. Debentures are riskier than subordinated debentu

res because they are paid last in the event of bankruptcy.
Business
1 answer:
Assoli18 [71]3 years ago
8 0

Answer:

The answer is C. The interest rate on subordinated debentures is likely to be higher than the interest rate on debentures

Explanation:

The options to the question are under the 'Ask about this question'

Debentures are long-term security (bond) that is not secured by any collateral. It is being issued based on the past record of the issuer i.e the issuer's creditworthiness and also its reputation.

What is subordinated debenture? - This is also an unsecured loan but ranks below the table i.e some loans are above it in the ranking.

The interest or yield on subordinated debts is usually higher because it is more risky than the normal debentures.

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Which of the following is a service business?
creativ13 [48]

Answer:

travel agency

Explanation:

as service businesses include <u>companies engaged in transport</u>, food service, distribution, retail, and other industries that sell services rather than products. These intangibles provide the primary revenue source for service businesses.

4 0
3 years ago
Read 2 more answers
When society produces the combination of goods and services on the ppf that it values the most highly, society has?
Brums [2.3K]
When society produces the combination of goods and services on the PPF that it values the most highly, society has Allocative efficiency. PPF is defined as the public provident fund, and Allocative efficiency<span> is the point in which the preference of the product consumption is balanced in production levels in an economy. This is specifically related to the benefit of a product or service being equivocal to the cost of making it, directly reflective of consumer preferences. 
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3 0
3 years ago
Yakov, Ana, and Dina want to bake a cake. They are choosing among chocolate cake (C), vanilla cake (V), and red velvet cake (R).
vovangra [49]

Answer:

The specified preferences of Charles, Diana and Juanita. Charles and Juniata prefer chocolate over red velvet cake. Dina favors red velvet over chocolate.

So, when there is voting among red velvet and chocolate cake, the majority will select the Chocolate cake and among winner and vanilla majority will vote for Vanilla cake.

This is because Dina and Juanita favor vanilla over chocolate.

Among Chocolate and vanilla cake, the majority will elect for vanilla and among this winner and red velvet cake, the majority will choose for Red velvet cake.

This is because Diana and juanita favor vanilla over chocolate. So, vanilla cakes get majority elects. When there is voting among vanilla and red velvet , red vanilla acquire majority votes as charles and dina favor red velvet over vanilla.

The statement is False. The preferences are not transitive.

In the first situation chocolate is chosen to vanilla and red velvet is preferred to vanilla. Although, in the second situation, chocolate is favored to red velvet and vanilla is preferred to chocolate. Thus, the preferences do not exhibit transitivity.

8 0
3 years ago
You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 perc
miskamm [114]

Answer:

$573,963

Explanation:

First, calculate the present value of the loan payments using the following formula

PVA = PMT x [ ( 1 + r )^n - 1 ] / [ r ( 1 + r )^n)

PVA = $950 x [ ( 1 + 7.1%/12 )^360 - 1] / [ 7.1%/12 ( 1 + 7.1%/12 )^360)

PVA =  $141,362.32  

Now calculate the difference of Value of loan and the present value of loan payment

Difference = Loan value - PV of loan payment = $210,000 - $141,362.32 = $68,637.68

This te Ballon payment in present value term, We need to determine the value at the end of the loan term.

Hence we need to calculate the future value of this payment as follow

Future value = Present vale x ( 1 + Monthly Interest rate )^numbers of months

Future value = $68,637.68 x ( 1 + 7.1%/12 )^360

Future value = $573,963.09

Future value = $573,963

Hence the ballon Payment will be $573,963

7 0
3 years ago
Which of these are disadvantages of self-employment?
777dan777 [17]
Financial insecurity, discouragement, legal issues, long hours
4 0
3 years ago
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