Callable bond and a putable bond
What are a callable bond and a putable bond? How can each of these bonds affect their market interest rates?
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a) A callable bond can be retired early at the issuer’s discretion. b) A putable can be retired early at the investor’s discretion. Effects: A call provision increases the market interest rate and a put provision decreases it.
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Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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