Answer:
The option which is an example of a debt funding source can be banks, credit unions, or any external lender.
Explanation:
- Debt funding is when a company raises money by marketing bonds, bills and notes, etc. to the investors
- It differs from equity financing which is selling shares of the company.
- Debt funding must be paid back at an previously agreed date.
- If the business goes under, then the lenders have more rights on the property that will be liquidated than the share holders.
A puttable bond gives the bondholder the right to cash in the bond before maturity at a specific price after a specific date.
What is meant by puttable bonds?
A puttable bond, also known as a put bond or retractable bond, is a type of bond that gives the bondholder (investor) the right but not the responsibility to demand that the issuer repay the bond before its maturity date. This bond has a put option built into it, to put it another way.
Who benefits from a puttable bond?
Bonds with put options offer excellent support for the bondholder's reinvestment risk. They have the option to repurchase the bond at any time, using the proceeds to buy high-yield bonds. However, businesses can be financed by firms without having to pay higher interest rates.
Learn more about Puttable bonds: brainly.com/question/16964019
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Answer:
This is just an advertisement due to the fact that it misses terms in order to be an offer
Explanation:
To begin with, if we wanted to make that advertisiment a more specifically offer then the manager should add certain conditions and terms in order to make it, like for example the conditions that are necessary in a contract to accept the offer that is being made by the company to the client. Therefore that in order to make that advertisiment an offer it is necessary to add the conditions of the sale that the consumer will have to agree to if he wanted to buy that offer.
Answer:
See Below
Explanation:
We can use the future price formula here, which is:
Where
F is the theoretical future price
P is the present index standing
r_f is the risk free rate
d_y is the dividend yield
n is the number of months of the futures deliverable
Now,
given
P = 395
r_f = 0.1
d_y = 0.03
n = 3
Substituting, we get:
Actual future price is 404. The index future price is higher. So the strategy would be to sell the futures contracts. Long the shares underlying the index.
