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Aleks04 [339]
3 years ago
15

Even though many bonds have deferred sinking funds, the sinking fund has the following effects on bondholders: I) provides extra

protection to bondholders as both an early warning system and perhaps some collateral cash; II) provides an option to the firm to buy bonds at the lower of market or face value; III) puts the bondholders at added risk due to potential inability to meet sinking fund payments
Business
1 answer:
Vladimir [108]3 years ago
3 0

Answer: I) provides extra protection to bondholders as both an early warning system and perhaps some collateral cash

II) ) provides an option to the firm to buy bonds at the lower of market or face value.

Explanation:

A sinking fund is typically an amount of money that is being set aside by a company in order to either pay a bind or pay off a particular debt that the company has incurred.

The effect of the sinking bond on bondholders is that it provides extra protection to bondholders as both an early warning system and perhaps some collateral cash and tabt is also provides an option to the firm to buy bonds at the lower of market or face value.

Therefore, option I and II are correct.

You might be interested in
"Tariffs and other trade restrictions increase the domestic scarcity of products from abroad. Such policies benefit domestic pro
iris [78.8K]

Answer: is correct

Explanation: Tariff refers to the tax imposed on import and export activities. These are a type of trade restrictions that are made to regulate the domestic market of the country.

The tariff imposed on export will increase the price of the exported goods in the domestic market. Thus a majority population in the country will not purchase it and the domestic producers will benefit from this situation. In such a case, the domestic producers will make unreasonable profits from domestic consumers.

3 0
3 years ago
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected
Lelu [443]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The dinner-dance committee has assembled the following expected costs for the event:

Dinner (per person) $ 18

Favors and program (per person) $ 2

Band $ 2,800

Rental of ballroom $ 900

Professional entertainment during intermission $ 1,000

Tickets and advertising $ 1,300

The committee members would like to charge $35 per person.

1) Break-even point= fixed costs/ contribution margin

Break-evenn point= (Band+rental+professional entertainment+tickets)/[price - (dinner+favors)]

Break-even point= 6000/(35-20)= 400 individuals

2) Q= 300    P=?

300=6000/(P-20)

300*(P-20)= 6000

300P=12000

P=$40

7 0
3 years ago
Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are​ ava
mote1985 [20]

Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

or

= $ 10 / 1

or

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

4 0
3 years ago
Governments that centralize their risk financing activities should account for this activity in which type of fund?
kari74 [83]

Answer:

The correct answer is letter "D": Either the General Fund or Internal Service Fund is acceptable.

Explanation:

The General Fund is used by the government to record all the inflows and outflows of the transactions related to daily use expenditures and long-term operations. The agency that provides the resources is the Department of Treasury through loans receivable.  

The Internal Service Fund record all transactions derived from the expenditures in the use of goods or services among government departments and agencies on a cost-reimbursement basis.

Thus, when reporting governmental financial activities, the can be recorded in the General Fund or the Internal Service Fund.

7 0
3 years ago
Janet works on a team of 15 people working in research and development for a toymaker. They have weekly meetings to discuss new
RideAnS [48]

Answer:

D. production blocking.

Explanation:

Janet is suffering from production blocking. This is an issue encountered in brainstorming sessions related to the fact that only one member must speak at a time which can prevent other members from sharing their ideas as they occur and make it difficult for them to concentrate in their own idea since they need to be paying close attention to whatever is being said.

7 0
4 years ago
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