People are demanding more apartments than sellers are willing to offer. This means that there is a shortage of apartments.
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:
Option (D) is correct.
Explanation:
Value of Yahoo:
= Shares × Price
= 110 shares × $20
= $2,200
Value of General Motors(GM):
= Shares × Price
= 210 shares × $20
= $4,200
Value of Standard and Poorʹs Index Fund (SPY):
= Shares × Price
= 70 shares × $130
= $9,100
Total value = Value of Yahoo + Value of GM + Value of SPY
= $2,200 + $4,200 + $9,100
= $15,500
Therefore,
Portfolio weight of YHOO:
= Value of YAHOO ÷ Total value
= $2,200 ÷ $15,500
= 0.1419 or 14.19%
Portfolio weight of GM:
= Value of GM ÷ Total value
= $4,200 ÷ $15,500
= 0.2709 or 27.09%
Therefore, the portfolio weight of YHOO and GM are 14.2% (approx) and 27.1% (approx), respectively.
Answer: $2,398.55
Explanation:
The deposit at the end of year one would have been compounded by 2 years at the end of year 3. The second year deposit would have compounded by 1 year and the third year deposit would not have compounded at all.
The future value at the end of 3 years is;
= (500 * ( 1 + 11%)²) + (750 * ( 1 + 11%)) + 950
= $2,398.55
<em>The question might not be the exact same but you can use this as a reference. </em>
If the market contracts, due to internal or external factors, then the demand for the goods and services that the firm sells will fall and thus, a propitious niche will disappear. and, if the market expands, and the company fails to meet the increased demand, then also the propitious niche will vanish.
