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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

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geniusboy [140]

Answer: The correct answer is choice b - $1,965.

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3 years ago

Read 2 more answers

Ether Inc., an electronics manufacturer, offers free T-shirts with the company's logo on them free of charge to its customers. E

torisob [31]

TRUE

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3 years ago

An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals

Yuki888 [10]

Answer:

0.063 or 6.3% (or more)

Explanation:

Given:

Combined Tax Bracket = 30% = 30/100 = 0.30

Yields of corporate Bonds = 9% = 9/100 = 0.09

Yield to Shift Investors to choose municipal bonds = ?

Calculation:

Yield from corporate bond = (After tax yield) x Yield rate of corporate Bonds

= (0.70) x (0.09)

= 0.063 or 6.3%

Working note:

After tax yield = (1 - tax rate )

After tax yield = (1 - 0.30 )

After tax yield = (0.70)

so, they must give 6.3% yield

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4 years ago

Which of the following is true of relevant costs? a.Relevant costs are past costs that do not differ from one alternative to ano

Sloan [31]

Answer:

Explanation:

Relevant cost are cost that affects future cash flows. Cost that differ across alternatives are also relevant but are known as variable cost. All variable cost are relevant but not all relevant cost are variable.

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3 years ago

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Nutka1998 [239]

The Professional Code of Ethics states the principles and core values that are essential to the work of a particular occupational group.

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3 years ago