Taussig Corp.'s bonds currently sell for $960. They have a 6.35% annual coupon rate and a 20-year maturity, but they can be called in 5 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds?
A. 5.51%
B. 6.72%
C. 6.52%
D. 5.98%
E. 7.46%
Answer: B
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a. $18.00 b. $9.00 c. $4.50 d. $13.50
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a. Variable costs. b. Semivariable costs. c. Fixed costs. d. Curvilinear costs.
Answer the following statements true (T) or false (F)
1. Most of the time when service failures occur, the people part of the delivery system has succeeded, but other aspects were unsatisfactory. 2. Hospitality organizations should not admit liability for unfortunate, unavoidable occurrences that are not its fault, but they should do everything in their power to rectify such situations. 3. The main reason for empowering servers to provide on-the-spot service recovery is to keep dissatisfied customers from leaving that way. 4. An evangelist is created by exceeding expectations. 5. No matter how the recovery is handled, the original failure is always more important to the company.
Most email users understand the importance of encrypted email messages and use one of the easily accessible encryption protocols for their emails
Indicate whether the statement is true or false