Answer:
Retiring the oldest bond
Explanation:
Firms issue bonds to raise the funds. Firm has to pay dividend on those bonds and the ability of firm to pay dividend reflect the financial position of the firm. Thus, retiring the oldest bond in exposes company to the most risk of being issued an emergency loan
Answer:
Beta of this portfolio = 0.9953
Explanation:
Given:
Investment in security A = $650 beta 1.2
Investment in security B = $450 beta 0.7
Find:
Beta of this portfolio
Computation:
Beta of this portfolio = [650 / (650+450)]1.2 + [450 / (650+450)]0.7
Beta of this portfolio = [650 / (1,100)]1.2 + [450 / (1,100)]0.7
Beta of this portfolio = 0.7090 + 0.2863
Beta of this portfolio = 0.9953
<span>The solution to the problem is as follows:
$1382*24 (4 payments per year * 6 years)=$33,168+$396=$33,564 (Total)
$33,564-$24,680=$8,884
Therefore the total finance charge is c.$8,884.
I hope my answer has come to your help. God bless and have a nice day ahead!
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Answer: the number of failing banks.
Explanation:
The Savings and Loan Crisis lasted from the 1980s to the 1990s and saw the failure of 1,043 Savings and Loan associations (S&Ls). These small "banks" accept deposits and use them to create loans for their members.
The problem with these S&Ls was that they were making losses on the loans they gave out and instead of getting out of business, they engaged in speculative trading to offset their gains and lost even more money leading to the government closing them down.
