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Ierofanga [76]
3 years ago
15

if the market price of common stock increases substantially, bondholders with convertible bonds benefit. convertible bonds can b

e converted into common stock at the option of the issuing company. bondholders with convertible bonds receive interest on the bonds until conversion. convertible bonds sell at a higher price and pay a lower rate of interest than those without the conversion option.
Business
1 answer:
BARSIC [14]3 years ago
5 0

Answer:

if the market price of common stock increases substantially,

bondholders with convertible bonds benefit.

Explanation:

A convertible bond is a fixed interest debt security.  The number of common shares into which it can be converted is predetermined at the issuance date. While the conversion can be done at certain time in the life of the bond, the decision to convert is usually at the discretion of the bondholder.  As investors, bondholders opt to convert when it would be most profitable.  This happens when the market price of the common stock increases.

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Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently have a quote of 110 − 100. Dud
Aneli [31]

Answer:

a. Long

b. $375.00

Explanation:

a. If interest rates decrease over the period of investment, Treasury bond prices will increase. Thus, Dudley Savings Bank should take a long position in the futures contracts on the Treasury bonds. As T-bond prices go up, so will T-bond futures prices.

b. Given a long position:

Net profit = Sale price of futures − Purchase price of futures

= $107,687.50 − $107,312.50 = $375.00

Purchase price of futures = 107 − 100 = 107 10/32% × $100,000 = $107,312.50

Sale price of futures = 107 − 220 = 107 22/32% × $100,000 = $107,687.50

Explanation:

3 0
3 years ago
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $14.00
romanna [79]

Answer:

The correct answer to the following question will be "$76,986".

Explanation:

Although the organization is reportedly going to pay $14.00 per unit, even before manufactured throughout the corporation, cost and save per unit will become the variation among current value as well as production costs without set rate. The cost of operating expenses will not be included to measure the gain because the idle resources of the company would be included and would not raise the fixed costs.

Therefore the cost differential would be as follows:

⇒ Differential \ cost = (Current \ purchasing \ price-Manufacturing \ cost \ excluding  \ fixed \ cost)\times 38,493On putting the values in the above formula, we get

⇒                        =(14-12)\times 38,493

⇒                        =2\times 38,493

⇒                        =76,986

5 0
3 years ago
Given the total volume and importance of international trade and international exchanges, describe the implications to someone's
sweet [91]

Answer:

Education

Explanation:

Given the total volume and importance of international trade and international exchanges, describe the implications to someone's career in business, and to your education in particular.

3 0
3 years ago
Is overshooting (in theory and in practice) consistent with purchasing power parity? Consider the reasons for the usefulness of
Ludmilka [50]

Answer:

1. Yes, overshooting is consistent with PPP. Investors forecast the expected exchange rate based on the theory of PPP. When there is some change in the market, the investors know the exchange rate will change to equate relative prices in the long run. This is why we observe overshooting in the short run. The investors incorporate this information into their short-run forecasts.

2. Exchange rates are volatile in the short run. The theory's implication that there is exchange rate overshooting (in response to permanent shocks) is one explanation for short-run volatility in

exchange rates.

6 0
3 years ago
Parker had just graduated from Howard University in Washington, DC at the top of his class with a B.S. in Computer Engineering.
Nikitich [7]

Answer:

The firm wins because these actions are not illegal.

Explanation:

The laws that prohibit non physical harassment at work are:

  • Title VII which prohibits discrimination based on race, color, sex, religion, etc.
  • ADEA which protects people who are older than 40 years old against discrimination based on their age.

Parker should first address this issue with the company and see how it can work out. It is very difficult for someone to win a lawsuit if they don't fall under any protected category. In this case, Parker's colleagues are jealous because he is simply smarter and that is the reason why they are harassing him. I guess that if he can prove with a psychiatrist report that the continuous harassment is affecting his well being, he might have a chance.

I knew a case from first hand about a very beautiful woman who had two careers and was very smart and efficient. She wasn't harassed by men, most men at the office only starred at her and wouldn't dare to talk to her. She was harassed by other women that were jealous about her beauty and the fact that she was probably the smartest person around. Besides everybody knowing that the other women were jealous, and everyone making jokes about who was most jealous, she couldn't do anything about it. She ended up quitting the job and to be honest her life got much better at another place. Sometimes an organization's culture is managed by one or two individuals, and if they feel threatened by someone else, they may act in a very childish way and the rest follows.

4 0
4 years ago
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