Provide an explanation of the basic bond terminology and features
What will be an ideal response?
Answer: A bond has a par value, or face value, which is the amount that will be returned to the bondholder at maturity. Bonds pay a percentage of their par value annually in the form of coupon interest rates. A legal agreement, called an indenture, is created between the issuing firm and the bond trustee who represents the bondholders. Bonds have a call provision to recall bonds when the interest rates drop so the issuer can make more money. To protect the issuer and the investor, a sinking fund may be established by the issuer to set aside money to pay off bonds at maturity.
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What are some perverse effects of merit pay?
What will be an ideal response?
(Net profit/net sales) equals _____
a. asset turnover b. profit margin c. cost of goods sold d. financial leverage
Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty
Indicate whether the statement is true or false
Personalization involves targeting marketing messages to specific individuals by adjusting the message based upon a consumer's preferences or past purchasing behavior
Indicate whether the statement is true or false