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alexandr402 [8]
3 years ago
8

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve

stors face?
The issuer may not raise enough capital.
The issuer could refuse to pay dividends.
The issuer could go bankrupt.
The issuer may not make a profit.
Business
2 answers:
Fiesta28 [93]3 years ago
7 0

Bonds are a type of investments that is categorized as a fixed-income instrument which symbolizes loans that investors make to a borrower. Bonds can be made by a corporation or a government. Bonds always have end dates, and they generally have lower risks compared to stocks.

However, there are still some risks associated with this type of instrument, which is (C) the issuer could go bankrupt.

shutvik [7]3 years ago
3 0

The answer is: The issuer could go bankrupt.

When investors buy a bond, they basically enter an agreement where the bond issuer become indebted and agree to payback the amount of money they invested plus interest rates.

The thing is, the full value of bond can only fully paid back along with the interest after it reach maturity dates. If the issuer go bankrupt before the bond reaching its maturity, the issuer would be freed of all debts including the debts to the investors of the bond.

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Melissa is a minor who agrees to purchase a car from Umberto for $10,000 one month after she turns eighteen years of age. On tur
BartSMP [9]

Answer:

enforceable because it has been expressly ratified by Melissa.

Explanation:

A contract is defined as a legally binding agreement between parties, and is enforceable on both parties involved. There is usually an offer and acceptance to make the contract valid and enforceable. It can involve exchange of goods and services, or future promise to exchange goods and services.

In this instance bMelinda agreed with Umberto that she will buy a car from him when she turns 18 years. The condition to the contract was Melinda turning 18 years.

She has ratified this condition so the contract is now enforceable.

7 0
3 years ago
On December 31, Cruise Company has 18,000 units of an inventory item, which cost $46 per unit when purchased on June 15. The sel
Maksim231197 [3]

Answer:

the inventory be reported at on the December 31 balance sheet is $828,000

Explanation:

Here the inventory should be recorded at lower of cost or net realizable value

Since the cost per unit is $46

And, the net realizable value is $48

So, the lowest cost per unit is $46

Now the ending inventory reported is

= 18,000 units × $46 per unit

= $828,000

hence, the inventory be reported at on the December 31 balance sheet is $828,000

6 0
2 years ago
Which of the following statements is true of Gap 3 in the GAP model?
Westkost [7]

Answer:

d. It recognizes that manufacturing and service delivery systems must execute quality specifications well.

Explanation:

GAP provides for better performance and accounting standards.

Whether manufacturing unit, or a unit of providing service, it establishes some standards which need to be complied with. Accordingly one of the standard requires the units to have quality specifications. This means that the manufacturing units along with units providing service shall not only consider for increasing their revenue, but also increase the quality provided by them.

5 0
2 years ago
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res
vladimir1956 [14]

Answer:

a) 12.23%

b)  12.94%

c) 14th month payment interest = $157.33

   14th month principal =  $369.50

d)  18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

Explanation:

price of truck = $15000

down payment = $1000

Loan amount = $14,000

assume monthly interest rate = r%

Loan amount after 1 year will be = 14000 * (1+r%)12

next we will determine the annuity factor = [  (1/r)-[(1/r)*(1/ (1+r)t)] ]

r = periodic interest rate , t = number of payments

monthly loan payment = $14000*(1+r%)12 / [  (1/r)-[(1/r)*(1/ (1+r)36)] ]

hence r = 1.019%

a) nominal interest rate

=  1.019% *12 = 12.23%

b) effective interest rate

= (1+1.019%)^12 -1 = 12.94%

attached below is the Amortization schedule

c) 14th month payment interest = $157.33

    14th month principal =  $369.50

d) 18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

3 0
2 years ago
Xyz inc. has total debt ratio of 0.62. calculate the company's equity multiplier.
sergiy2304 [10]
The equity multiplier is obtained by adding one to the debt ratio.

Therefore, the equity multiplier of XYZ inc is given by 1 + 0.62 = 1.62
6 0
3 years ago
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