Question
A company issues a 10-year callable bond with a 9%
coupon. After 5 years, market interest rates fall to 6%. What is the most likely action the issuer will take, and why?Solution
A callable bond gives the issuer the right to repay early. If interest rates fall, the issuer can call the bond and issue new bonds at lower rates, reducing interest costs.
A man first travels 140 km at 70 km/hr and next 140 km at 35 km/hr. The average speed for the first 280 km of his travelling is:
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Average speed of ‘A’ during a 20-hour journey is 24 km/h. If he covered the first 320 km of his journey at a speed of 20 km/h, then find the speed a...
A person travels from point A to point B at a speed of 60 km/h and returns to point A at a speed of 80 km/h. He spends 2 hours less on the return journe...
A man is travelling at a speed of 60 km/h such that he will take 80 minutes to reach his destination. But after completing half the journey, the man too...
