Answer:
Yield to call is 9.8%
Explanation:
The rate of return bonholders receives on a callable bond until the call date is called Yield to call.
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
C = Coupon Payment = $105 per year
F = Face value = $1,000
P = Call price = $1,100
n -= number of years to call = 5
Yield to Call = [ $105 + ( $1,000 - $1,100 ) / 5 ] / [ ( $1,000 + $1,100 ) / 2 ]
Yield to Call = [ $105 - 2 ] / $1,050 = $103 / $1,050 = 0.098 = 9.8%
Answer:
The correct answer is letter "D": A standardized way of presenting the key terms of your credit card agreement.
Explanation:
Named after Senator Charles Schumer (born in 1950), the Schumer box is part of the disclosure information financial institutions must provide to debtors so they can be aware of what is the interest and fees subject to the use of credit cards. It is a box mostly present in credit card statements but must be included in any credit card solicitation.
Answer: A. low degree of substitutability.
Explanation:
Substitutability refers to the availability of alternative options to the variable in question. If something is said to be highly substitutable or to have a high degree of substitutability, then that means that it is easily replaceable because it has alternatives. The reverse holds true.
Therefore, Jamie can be said to have a low degree of substitutability because the client wants to deal with only him and if he is removed or unavailable, the company would not be able to deal with the client.
Answer:
FALSE
Explanation:
As the lower coupon means there is less amount of cash subject to variation of interest rate.
We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.
If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.
