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
olga2289 [7]
3 years ago
10

Amram Inc. can issue a 20-year bond with a 6% annual coupon at par. This bond is not convertible, not callable, and has no sinki

ng fund. Alternatively, Amram could issue a 20-year bond that is convertible into common equity, may be called, and has a sinking fund. What most accurately describes the coupon rate that Amram would have to pay on the second bond, the convertible, callable bond with the sinking fund, to have it sell initially at par?
Business
1 answer:
tino4ka555 [31]3 years ago
3 0

Answer:

b. It could be less than, equal to, or greater than 6%.

Explanation:

THIS ARE THE OPTIONS FOR THE QUESTION BELOW!

a. Exactly equal to 6%.

b. It could be less than, equal to, or greater than 6%.

c. Greater than 6%.

d. Exactly equal to 8%.

e. Less than 6%.

Convertible bonds can be regarded as one which can be converted to equity shares at a particular time, so in this case, Base on specific terms set the coupon rate can be equal, greater even less than 6%, talking of real world, the feature of the convertible could make the coupon rate to be probably less than 6%.

You might be interested in
Through the capital budgeting process, financial managers will decide which ___________ the organization will fund.
frozen [14]

Answer: project or investments

Explanation:

Capital budgeting is the process tbat us used by a business when the projects or investments that a particular business wants to undertake are critically looked into and the b at one is chosen.

Through the capital budgeting process, financial managers will decide which project or investments the organization will fund.

5 0
3 years ago
Suppose a period of continuous political instability leads people to believe that the economy will slide into a deep recession.
diamong [38]

Answer:

B) Commodity

Explanation:

A recession is an economic term or period when an economy a decline in economic activities. Is a period where there is low demand for economic goods and services, pile of semi-finished and finished goods, which leads to industries laying off workers ( increased unemployment) and the use deep here emphasize the seriousness, strength, degree of the recession or economic downturn. As a result, people become more likely to accept commodity money in exchange for goods and services, because the fiat money in circulation can no longer stimulate demand, fiat money deficit and the alternative will be for people to exchange the good they have for the one they don't have and that is barter system

6 0
3 years ago
Which of the following refers to a process that first determines what information marketing managers need and then​ gathers, sor
Lapatulllka [165]

Answer:

c. Marketing information system​ (MIS)

Explanation:

Marketing information system​ (MIS) -

It refers to the management of the information to help the marketing decision making process , is referred to as Marketing information system​ (MIS)  .

The information or the data is collected , stored and distributed accordingly , to make the process fast and efficient .

Hence , from the given information of the question,

The correct option is c. Marketing information system​ (MIS) .

3 0
3 years ago
Who should never use jargon? a surgeon giving orders to her staff a coach telling a quarterback what play to use a plumber order
Mazyrski [523]

A computer repair person talking to a customer should never use jargon.

<h3>What is Jargon?</h3>

Jargon is the specialized vocabulary that is connected with a specific field or activity. Jargon is typically used in a specific communicative context and may be difficult to understand outside of that context.

The context is usually a specific occupation, however jargon can exist in any in-group. This includes that a surgeon giving orders to her staff, a plumber ordering parts from a supply store, and a coach telling a quarterback what play to use.

A  computer repair person talking to a customer is not included in the use of jargon, as it does not require any specialized vocabulary in compare to the another examples given.

Therefore, option D is correct.

Learn more about the jargon, refer to:

brainly.com/question/9132901

#SPJ1

3 0
2 years ago
a bond with a face value of $1,000 has 12 years until maturity, has a coupon rate of 5.4%, and sells for $1,087. what is the yie
77julia77 [94]

If interest is paid annually the YTM is 4.48% and if interest is paid semi annually YTM is 2.24%. YTM means Yield to maturity that is paid on bonds ,to determine YTM we first calculate interest on the bonds which is explained below. Formula for YTM is given in the attachment.

Interest is paid annually
Annual Interest = 1000*5.4% = 54

YTM = [54 +(1000 - 1087)/12] /(1000+1087)/2 = 46.75 /1043.5

YTM = 4.480%

Interest paid semi annually

Interest = 1000*5.4% = 54/2 = 27

YTM = [27 + (1000 -1087)/24] / (1000+1087)/2 = 23.375/1043.5

YTM = 2.240%

In the above equation, time period is 24(12*2) because time period is semi annual.

A fixed-rate investment, such as a bond, has a speculative rate of return or interest known as yield to maturity (YTM), also known as redemption or book yield. The YTM is predicated on the idea or understanding that an investor buys the security at the current market price and retains it until it matures (reaches its full value), as well as the assumption that all interest and coupon payments are made on schedule.

Learn more about bonds here

brainly.com/question/25596583

#SPJ4

8 0
1 year ago
Other questions:
  • Four effects of financial irresponsibility
    8·1 answer
  • When Walmart threatens to punish or punishes the other channel member for not undertaking certain tasks, such as if it were to d
    9·1 answer
  • "Total revenue equals the price multiplied by the quantity. The relative change price and quantity is given by the concept of __
    14·1 answer
  • Dena's Decorations is a South Carolina business that has a SUTA rate of 3.6% and an annual SUTA wage base of $14,000. The employ
    6·1 answer
  • Who would certify the interoperability performance of a command and control system used by both the Army and the Navy?
    13·1 answer
  • Exercise 4-09 Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales $1,300,000 Write-off of
    10·1 answer
  • "A 25-year old client with a low risk tolerance wishes to invest in bonds. The client has invested in equities before, but has n
    8·1 answer
  • Who wants branliest???!!!
    12·1 answer
  • Did yall know Kanye West was running for president?
    10·1 answer
  • Which state produces nearly 85% of wine in the u.s.?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!