1a. Which of the following situations would require a decrease in the coupon rate for a...

1a. Which of the following situations would require a decrease in the coupon rate for a bond selling at par?

A. The addition of a call provision

B. The addition of a convertibility option

C. The increase in the rating from BBB to AA

D. The addition of sinking fund provision

E. All of these choices are correct.

1b.A borrower took out a 30-year fixed-rate mortgage of $2,250,000 at a 7.2 percent annual rate. After ten years, she wishes to pay off the remaining balance. By then, interest rates have fallen to 7 percent. How much does she have to pay to retire the mortgage (to the nearest dollar)?

A. $2,122,426

B. $2,225,330

C. $2,015,678

D. $2,212,041

E. $1,939,765

Expert Solution

1b. Option E is correct All of these choices are correct. because all the options will result in reduction of coupon rate

1c. Balance of Mortgage after 10 years = $1939765 Option E

jeff jeffy answered 1 year ago

Which of the following situations would be consistent with a relative decrease in the offered coupon...

Which of the following situations would be consistent with a relative decrease in the offered coupon for a corporate bond issuance selling at par? A. An increase in the risk free rate. B. The addition of a convertibility option. C. The addition of a call provision. D. A company's credit rating declining from AAA to A. E. All of these choices are correct.

Which of the following situations would require the external auditor to include an emphasis-of-matter paragraph that...

Which of the following situations would require the external auditor to include an emphasis-of-matter paragraph that refers to consistency in an unqualified audit opinion? Select one: a. Entity sold a subsidiary and consolidated six subsidiaries this year compared to seven from last few years. b. Entity corrected a prior mistake in accounting for capitalization of interest. c. Entity changed the estimated allowance for uncollectible accounts receivable after feedback from the auditor. d. Entity changed its inventory costing method from FIFO...

A decrease in lung compliance will result in which of the following situations? a. an increase...

A decrease in lung compliance will result in which of the following situations? a. an increase in the vital capacity of the lung b. a trend toward increased ventilation relative to pulmonary perfusion c. increase the work of breathing d. a greater change in volume for a given change in transmural pressure

Which of the following policy changes would decrease the real interest rate? A A tax cut...

Which of the following policy changes would decrease the real interest rate? A A tax cut on interest income B A policy that decreases government consumption expenditures C A reduction in social security benefits D All of the above correct answer is D need the explianation

1. Which of the following factors would decrease the rate of diffusion? (Select all that apply)...

1. Which of the following factors would decrease the rate of diffusion? (Select all that apply) Check All That Apply increased molecular weightincreased molecular weight decreased molecular sizedecreased molecular size larger concentration gradientlarger concentration gradient denser mediadenser media smaller concentration gradient 2. Which of the following factors would increase the rate of diffusion? (Select all that apply) Check All That Apply increased molecular weightincreased molecular weight decreased molecular sizedecreased molecular size larger concentration gradientlarger concentration gradient denser mediadenser media thinner...

Which of the following would result in a decrease in bond prices?

Which of the following would result in a decrease in bond prices?Interest rates decrease.Time passes and a discount bond moves closer to maturity.The bond rating of a bond changes from BBB to C.

which of the following would cause a decrease in the velocity of money?

Which of the following would cause a decrease in the price of a good? a. an...

Which of the following would cause a decrease in the price of a good? a. an increasing shift in the demand for good and no shift in supply b. an increasing shift in the supply of a good and no shift in demand c. an increasing shift in the demand for good and a decreasing shift in supply d. a decreasing shift in the supply of a good and no shift in demand

For the following two situations fully explain why the monopolist would increase or decrease output. 1....

For the following two situations fully explain why the monopolist would increase or decrease output. 1. Marginal Revenue exceeds Marginal Cost 2. Marginal Cost exceeds Marginal Revenue

what laboratory results would require a nurse to decrease a heparin IV?

Question