In the development of a SFAS matrix, the first step is to:___________

Fooling Company has a callable bond outstanding with a coupon of 10.4 percent, 25 years to maturity, call protection for the nex

erastovalidia [21]

Answer:

The yield to call for this bond is 9.30%

Explanation:

Yield to call

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Now use the following formula to calculate the Yield to call

Yield to Call = [ C + ( F - P ) / n ] / [ ( F + P ) / 2 ]

Where

F = Face value = $1,000 ( Assumed )

C = Coupon Payment = Face value x Coupon rate = $1,000 x 10.4% = $104

P = Call price of the bond = Face value + Call Premium = $1,000 + $75 = $1,075

n = Numbers of years to call = 10 years

Placing vlaues in the formula

Yield to Call = [ $104 + ( $1,000 - $1,075 ) / 10 years ] / [ ( $1,000 + $1,075 ) / 2 ]

Yield to Call = 0.0930

Yield to Call = 9.30%

8 0

3 years ago

Tom, Mary and Jill have apartments in the same building. A security system for their building costs $750. Tom is willing to pay

SSSSS [86.1K]

Answer: The efficient outcome is to have the security system installed. After the meeting the security system will be installed, which illustrates the free rider problem.

Free rider is the burden on resource which is been shared, the problem is created by its usage or over-exploitation by individual who aren't paying their fair share.

∴ Here Tom is a free rider. i.e. He is willing to pay $100 where he should've paid $250.

3 0

3 years ago

The phs regulations about financial conflict of interests require which party to disclose significant financial conflicts of int

nikitadnepr [17]

The PHS regulations about financial conflict of interest require INVESTIGATORS to disclose significant financial conflict of interest.
The PHS requires that for each proposal submitted to that agency, the principal investigator and any other person regardless of their positions and titles, who are responsible for the conduct and the design of the experiment should certify that appropriate significant financial disclosure has been made.

8 0

3 years ago

Read 2 more answers

Prompt What should you do after writing something?

finlep [7]

Answer:

revise, edit, cite sources.

Explanation:

8 0

3 years ago

Read 2 more answers

Suppose two countries, Country A and Country B, have a similar real GDP per capita. Country A has an average economic growth r

ozzi

Answer:

D

Explanation:

Many studies have found a positive correlation between economic growth and living standards. This means that empirical works have found that countries with higher economic growth, often have better living standards than the countries with less economic growth. In this case if real GDP per capita of both countries is similar, then they are comparable.

We can deduce that the country B will experience an increase in living standards much more rapidly in the long run because economic growth leads to an increase in profits for firms, there would be a better capital and labor return. This means that firms will pay more for capital and labor, if households are de owners of capital and labor, their rents and wages will increase. The disposable income will increase for households and they will consume more goods and services, then their living standards will increase.

7 0

3 years ago

In the development of a SFAS matrix, the first step is to:____________.