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Zarrin [17]
3 years ago
14

A company issues a 10-year, callable bond at par with 8% annual coupon payments. The bond can be called at par in one year after

issue or any time after that on a coupon payment date. The call price is $108 per $100 of face value. What is the yield to call if this bond is called in one year
Business
1 answer:
fgiga [73]3 years ago
3 0

Answer:

the yield to call is 9%

Explanation:

The computation of the yield to call is as follows:

Given that

NPER is 10 year

PMT = $100 × 8% = $8

FV = $108

PV = $100

The formula is shown below:

= RATE(NPER,PMT,PV,FV,TYPE)

after applying the above formula, the yield to call is 9%

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Marlo Stanfield's operation also uses large quantities of prepaid cell phones, on average 1500 per week with a standard deviatio
Likurg_2 [28]

Answer:

option (A) 251 phones

Explanation:

Data provided in the question:

Average quantities of prepaid cell phones used = 1500 per week

Standard deviation, s = 145

Lead time for their own brand of prepaid cell phones, L = 3 weeks

lot size = 350 phones

Safety stock = 500 phone

Now,

The standard deviation of demand during lead time will be

= Standard deviation × \sqrt{\textup{Lead time}}

= 145 × √3

= 251.14 ≈ 251 phones

Hence,

The correct answer is option (A) 251 phones

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3 years ago
Explain why the demand curve for the market is downward sloping but is horizontal or completely elastic for an individual firm.
Elena-2011 [213]
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3 years ago
The entry to accrue a contingent liability reduces equity but not income. is made if it is more likely than not that the liabili
Lorico [155]

Answer:

is made if it is more likely than not that the liability has been incurred.

Explanation:

When contingent liability is recorded it is recorded by debiting income statement and creating a liability in balance sheet, also it is not accounted for until the amount of liability is pretty certain as without being clear about its occurrence and the amount involved the liability cannot be recorded.

There is no such loss account, there exists only income statement.

Therefore, with the above we can conclude that contingent liability is recorded only if:

is made if it is more likely than not that the liability has been incurred.

3 0
4 years ago
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Archy [21]

Answer:

diversification

Explanation:

because it is a technique that reduce risk by allocating investments across various industries

3 0
2 years ago
You purchase a new stereo at a local electronics store and decide to pay using your credit card. You
S_A_V [24]

Answer:

D. 0% interest for 1 year and 12% interest after that

Explanation:

Since you are purchasing a new stereo and will be paying it off within a year, it will be best to choose a credit card that charges the lowest interest rate in the first year. This will be the one with 0% interest rate for the first year; choice D. After you use it , fully pay off the amount and you can cancel your credit card so you don't get charged the 12% interest rate from year 2 going forward.

3 0
3 years ago
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