1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serggg [28]
3 years ago
11

IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value or the company can buy the

required bonds on the open market. IBM will choose to buy the required bonds on the open market if the bonds are traded at ______ in the market. Select one: a. $1850 b. $1116 c. $ 990 d. $1049 e. $1053
Business
1 answer:
Licemer1 [7]3 years ago
8 0

Answer:

c. $990

Explanation:

I am assuming that the par value of the bonds is $1,000. If the market price of the bonds is above $1,000, IBM can choose to redeem them at par value. E.g. if market value is $1,049, they can redeem them at $1,000 resulting in a $49 gain.

But if the bonds are selling below par value (under $1,000), then IBM should redeem them at market price since they will spend less money. E.g. if the market price is $990, why would they buy them at $1,000?

You might be interested in
3. A los factores productivos, dentro del proceso<br> de producción, también se conoce como..
emmainna [20.7K]

Answer:

El capital es uno de los tres factores de producción, se puede dividir en capital físico y capital humano, el capital físico son todas las máquinas y recursos que utiliza en su negocio. El capital humano se refiere a todos los conocimientos adquiridos.

6 0
3 years ago
Which of the following represents an increase in living standards over the past century? Check all that apply. Increased human a
pashok25 [27]

Answer:

Medical breakthroughs enable people to enjoy better healthcare nowadays.

Explanation:

An increase in living standard means that the lives of people are better off.

Advances in medicine have made it possible to find cure to various diseases. This improves standard of living.

Increased pollution of air and water and decline of dollar value have negative effects on living standard.

Pollution affects human health negatively and can cause diseases which negatively affect standard of living. Also, pollution can cause floods and other environmental disasters. Floods can displace people from their homes and this affects standard of living negatively.

Decrease in dollar value has made items more expensive.

I hope my answer helps you

7 0
3 years ago
This type of file is created when you save your word processing document.
rosijanka [135]
I believe the answer is data
5 0
4 years ago
Read 2 more answers
________leads to better quality and lower prices?
Nataly [62]

Answer:

a

Explanation:

because it makes sense in the sentence

5 0
3 years ago
Tuition of $2200 is due when the spring term begins, in What amount should a student deposit today, at to have enough to pay tui
Angelina_Jolie [31]

Answer:

Since Interest Rate and Period is not given; we would assume the spring term begins in 4 months and

Explanation:

First we will require to use the compound interest formula.

It is not mentioned the compounding period in the question. However, many of the bank accounts today offer monthly compounding, and this will be used as the basis.

i=interest rate=7.62% p.a => 7.62/12=0.635% per month

FV=PV(1+i)^n

FV=future value = 2200

PV=present value, to be found

i=interest rate per compounding period (month)=0.00635

n=number of periods=4

2200=PV(1+0.00635)^4

PV=2200/(1.00635^4)

PV=$2144.99

In case interest is not compounded, we could apply the simple interest formula:

FV=PV(1+ni)

PV=2200/(1+4*0.00635)

PV=$2145.504

5 0
3 years ago
Other questions:
  • Culture goes deeper than observable behavior. It is a society's shared and socially transmitted ideas, values, and perceptions t
    7·1 answer
  • Rossdale Co. stock currently sells for $73.09 per share and has a beta of 1.23. The market risk premium is 7.00 percent and the
    14·1 answer
  • In a mixed economy, how is output allocated? Question 4 options: Via the market mechanism Partly by the market mechanism and par
    5·1 answer
  • Testing conclusions review the typical benefits of physical capital described in section 1. give specific examples of how the fi
    14·1 answer
  • Problem 2 A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10 per order, Annual carryi
    11·1 answer
  • Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a usefu
    11·1 answer
  • Cartersville Co. reports the following data:
    12·1 answer
  • The owner of a leased property conveys possession of the property to the tenant providing them with uninterrupted us of the prop
    7·1 answer
  • The manager at the Overton Hotel in Lubbock believes that the success of the Texas Tech Red Raider Basketball team has an impact
    5·1 answer
  • Russnak Corporation is investigating automating a process by purchasing a new machine for $505,000 that would have a 10 year use
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!