A company issues the following bonds on June 1, 2002. Series A (counts as two) Series B $50 million BBB June 1, 2030 June 1, 2008 100 Par Value Rating Maturity Call date Call price $50 million BBB June 1, 2030 Non-callable -- If both bonds have the same market liquidity, the yield-to-maturity on the Series A bond should be [ ] than yield-to-maturity on Series B bond. a) higher b) lower c) the same d) either higher or lower(depending notherfactors)

Question

03-05-2021
Business

Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

A company issues the following bonds on June 1, 2002. Series A (counts as two) Series B $50 million BBB June 1, 2030 June 1, 2008 100 Par Value Rating Maturity Call date Call price $50 million BBB June 1, 2030 Non-callable -- If both bonds have the same market liquidity, the yield-to-maturity on the Series A bond should be [ ] than yield-to-maturity on Series B bond. a) higher b) lower c) the same d) either higher or lower(depending notherfactors)

Sagot :

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.

Why can't our body resist radiation?

AP US History question: The ability and the willingness the Framers had for compromise was reflected in the creation of a constitution that successfully address

Gabriella weighs 450 N. She climbs a flight of stairs to a height of 3 m. It takes her 5 seconds. If she were to climb the flight of stairs again in the same am

An increase in the atmospheric levels of carbon dioxide (CO2) is the biggest contributor to which of the following? A . global warming B . El Niño C. wind storm

If a Works Cited entry begins with the title of an article, we can assume that A. no author was listed. B. the information taken from that source isn't reliab

How do you tell if a caterpillar is a boy or girl?

Which of the following constitutes an unintended result of the Latin American revolutions? A) the complete Independence from Spain B) the breakdown of the caste

18.2 18.45 18.6 18.76 I needed to order them smallest to largest did I do it right?

Can drinking too much water be bad for you?

Which would a deist believe? A. It is through God that humans have natural rights to life and liberty. B. Surviving a disaster is a sign that God intervened. C.

Parrain Parrain · Answer 1 · 2021-05-06T21:23:41-04:00

Answer: a. Higher

Explanation:

Series A is a callable bond which means that the company will be able to buy it back after a certain period of time at a price dictated in the contract.

This provision is an advantage to the Issuer but not the investors so the Issuer will have to pay the investors more to get them to buy the bond even with the presence of this provision.

This additional payment will come in the form of a higher yield. This is why callable bonds have higher yields than non-callable comparable bonds.

Sagot :

Other Questions