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Author Question: The ________ is the return the bondholder receives on the bond if held to maturity. A) coupon B) ... (Read 65 times)

Hungry!

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on: Jul 10, 2018
The ________ is the return the bondholder receives on the bond if held to maturity.
 
  A) coupon
  B) coupon rate
  C) yield to maturity
  D) par rate

Question 2

Crimson Plumbing Supplies expects total sales of 9,000,000 this year. Ten percent of the company's sales are
  paid in cash; credit sales are usually paid by check. The average check size is 3,000.
 
  Second National Bank is
  offering the company a lock-box system. The fees are 800 per month plus .60 per check. Short-term
  marketable securities are currently earning 8 percent per year. What reduction in check collection time is
  necessary for Carrollton Plumbing Supplies to be neither better nor worse off from adopting the proposed
  system? Use a 365-day year.


irishcancer18

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

Answer: C

Answer to Question 2

CTIME = reduction in check collection time
Credit sales = (.90)(9,000,


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