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Author Question: A putable bond allows the bond issuer to call-in the bond prior to maturity. Indicate whether the ... (Read 360 times)

809779

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on: Jul 10, 2018
A putable bond allows the bond issuer to call-in the bond prior to maturity.
 
  Indicate whether the statement is true or false.

Question 2

You just graduated and you expect to work for ten years and then to leave for the Australian Outback bush country. You figure you can save 1,000 a year for the first five years and 2,000 a year for the next five years.
 
  These savings cash flows will start one year from now. In addition, your family has just given you a 5,000 graduation gift. If you put the gift now and your future savings when they start, into an account that pays 8 compounded annually, what will your financial stake be when you leave for Australia 10 years from now. (Round to the nearest whole dollar)
  A) 21,432
  B) 28,393
  C) 16,651
  D) 31,148
  E) 20,000


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Galvarado142

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: A putable bond gives the bondholder the right to sell the bond back to the company at a predetermined price prior to maturity.

Answer to Question 2

D


809779

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Reply #2 on: Jul 10, 2018
Thank you


Galvarado142

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Reply #3 on: Jul 10, 2018
No problemo


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