Finance

A line of credit does not resemble a personal credit card. Indicate w

A line of credit does not resemble a personal credit card. Indicate whether the statement is true or false.     ANSWER Answer: FALSE Explanation: A line of credit requirement might be that the line of credit remains at a zero balance for a clean-up period. This is similar to a personal credit card in […]

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Date: September 19th, 2020

Standard & Poors ratings are grouped into two major categories, invest

Standard & Poors ratings are grouped into two major categories, investment-grade and speculative- grade. Bonds that are rated (i) are included in the investment-grade group, while speculative-grade bonds are those rated (ii) . (i) (ii) a. AAA, AA, A BBB, BB, B, CCC, CC, C b. AAA, AA, A, BBB BB, B, CCC, CC, C […]

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Date: September 19th, 2020

In January, 2002, Jones Company issues a pure-discount bond with a pro

In January, 2002, Jones Company issues a pure-discount bond with a promised payment of X=$1000 that matures in T=5 years. The market price of the bond is P=$777 . The bond is default- risky. Specifically, the probability is 0. 8 that Jones Company will pay the full amount of X at maturity, and is 0.2 […]

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Date: September 19th, 2020