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3 years ago

Which of the following statements is FALSE?

Business

1 answer:

tankabanditka [31]3 years ago

8 0

Answer:

D)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.

Explanation:

The callable bond should be trade at the less price so it would generate the high return as compared with the non-callable bond. Whenever it is low it generated the high return but it could not increase over and above to the call value at the time when the yield is less. Also prior to the call date the investors expected that the issuer would follow and the price of the bond represent the given strategy

but the yield to maturity should not be measured at the time when the bond can be called

Therefore d option should be considered

You might be interested in

What characteristics of weak noncovalent interactions enable the assembly, stability, and functions of biomolecules?

Vesna [10]

Non covalent interactions within the macro molecules determine the three dimensional structures of the macro molecules. Non covalent interactions are also involved in many biological processes in which large molecules bind specifically and transiently to one another.

8 0

3 years ago

The BRS Corporation makes collections on sales according to the following schedule:

RideAnS [48]

Answer:

$110,300

Explanation:

June collections will comprise of

25% of June sales

71% of May sales

4% of April sales

25% of June sales

=25/100 x 100,000

=$25,000

71% of may sales

=71/100 x $110,00

=$78,100

4% of April sales

=4/100 x $180,000

=$7,200

Total June collections

=$25,000 + $78,100 +$7,200

=$110,300

5 0

3 years ago

Describes how a monopoly controls an industry

stira [4]

Answer:

Key ideas:

A single entity controls the flow of the product.
Possesses the power to limit prices.
Will have some influence in politics.
Difficult for new companies to enter the market.

Explanation:

Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.

When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.

3 0

3 years ago

Logan purchased a rental home and lot for $150,000. Her expenses totaled $5,000. Lots in the area sell for approximately $10,000

lana [24]

Answer:

The correct response is "145,000 ".

Explanation:

The given values are:

Purchased cost,

= $150,000

Expenses,

= $5,000

Selling cost,

= $10,000

Now,

Logan's basis for depreciation will be:

= $Purchased \ cost+Expenses-Selling \ cost$

On putting the values, we get

= $150000+5000-10000$

= $155000-10000$

= $145,000$ ($)

3 0

3 years ago

A building is acquired on January 1, at a cost of $960,000 with an estimated useful life of 10 years and salvage value of $86,40

nadezda [96]

Answer:

Year 1 - $192,000

Year 2 - = $153,600

Year 3 - $122,880

Explanation:

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 x (1/10) = 0.2

Depreciation expense in the first year = 0.2 x $960,000 = $192,000

Book value at the beginning of year 2 = $960,000 - $192,000 = $768,000

Depreciation expense in year 2 = 0.2 x $768,000 = $153,600

Book value in year 3 = $768,000 - $153,600 = $614,400

Depreciation expense in year 3 = 0.2 x $614,400 = $122,880

I hope my answer helps you

4 0

4 years ago