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2 years ago

What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?

Business

2 answers:

sasho [114]2 years ago

4 0

Answer:

Sinking fund

Explanation:

Sinking fund is a term used to describe an account that a bind trustee managed for the sole purpose of redeeming bonds early.

sinking fund: This can be seen as a type of fund that is created for the sole aim of repaying debt. It is created for the purpose of making debt easier to pay off.

The sinking fund account owner set aside a particular amount of money for a specific purpose.

Sinking funds is used to entice investors because in the case of default or bankruptcy, sinking fund will still allow investors to get their investment back. it is also a means used by corporations for bonds and deposits money to buy back issued bonds or parts of bonds before the maturity date arrives.

Greeley [361]2 years ago

3 0

Answer:

Sinking found

Explanation:

For we to have clearer picture, let's define sinking found. It can define as a fund having money put aside or saved use in paying off a bond or debt. A company that has issues with debt and will need to pay the debt off in the future,the sinking fund will help to reduce the difficulty of a large outlay of revenue. Therefore, sinking found is the term use for the main purpose of redeeming the bond early.

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Suppose there are two possible outcomes if a new policy is instituted to improve air quality. There is a 30% chance it will prod

BigorU [14]

Given:

Benefit from first policy = $20 million

Probability to get $20 million = 30%

Benefit from Second policy = $40 million

Probability to get $20 million = 70%

Find:

Expected value of the benefits:

Computation of expected value of the benefits:

Expected value of the benefits = Expected benefit from first policy + Expected benefit from Second policy

Expected value of the benefits = ($20 million × 30%) + ($40 million × 70%)

Expected value of the benefits = ($6 million) + ($28 million)

Expected value of the benefits = $34 million

Therefore, the expected value of the benefits from policies is $34 million.

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3 years ago

You are in charge of your country's currency, which is backed by a gold standard. Unfortunately, gold production is dropping sha

Dahasolnce [82]

Answer:

C. Move to fiat currency

Explanation:

Gold Standard

Gold standard is a monetary system where the paper money issued by the government through its monetary authority must be backed a defined quantity of gold. But nations have since moved from that gold standard and to a monetary system known as Fiat currency. under gold standard the value of money is commensurate with the value of gold backing such a currency.

Fiat currency

When monetary authority issue paper money that is not backed by gold but with the faith of the issuing authority, such is called fiat currency or fiduciary issue. Fiduciary issues is purely based on trust in the government issuing it.

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3 years ago

What is scientific management

dybincka [34]

Answer: A management of a business industry or economy

Explanation:

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2 years ago

Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th

Nina [5.8K]

Answer:

5.925%

Explanation:

For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment

Given that,

Present value = $1,050

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% = $80

NPER = 20 year - 1 year = 19 year

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is 7.50%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.50% × ( 1 - 0.21)

= 5.925%

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2 years ago

pJimmy is a client of yours and he has some holdings in U.S. T-Bonds. Over the past year, he received $500 in interest from thes

Firdavs [7]

Answer:

Jimmy must pay federal income taxes for the $500 earned in dividends during last year = $500 x 28% = $140

Since interest earned on federal securities are not taxed by state or local governments, there is no state tax liability.

Jimmy's total taxes due from dividends earned = $140

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2 years ago