The probability of a callable bond being called, and thus the yield premium that investors demand for the risk of a call, is directly related to:
a. the volatility of the bond's yield.
b. the deferment period.
c. the call price.
A
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An offer has come in for a one-time sale of 300 units at a special price of $120 per unit. The marketing manager says that the sale will not affect the company's regular sales activities, and that it will not require any variable selling and administrative costs. The production manager says that there is plenty of excess capacity and the sale will not impact fixed costs in any way. What is the effect of this deal on operating income?
Pisces Company manufactures sonars for fishing boats. Model 100 sells for $400. Pisces produces and sells 5000 units per year. Cost data are as follows:
A) Operating income increases by $400.
B) Operating income increases by $1800.
C) Operating income decreases by $6000.
D) Operating income increases by $6000.
Documents classified by the president to be in the interests of national security cannot be accessed under the Freedom of Information Act
Indicate whether the statement is true or false
Currency fluctuations can provide marketing opportunities whether a currency is appreciating or depreciating.
Answer the following statement true (T) or false (F)
Cherry Corporation sold $200,000 of 12% bonds at par. Each $1,000 bond carried ten warrants, each of which allows the holder to acquire one share of $10 par common stock for $30 per share. After issuance, the bonds were quoted at 99 ex rights, and the warrants were quoted at $4 each. Cherry Corporation should have assigned to the rights a value of
A. $8,000. B. $7,767. C. $7,500. D. $5,882.