Weekend Sale Limited Time 65% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: ac4s65

PYP is a listed courier company.

CIMA F3 Full Course Access
CIMA F3 View All Questions

PYP is a listed courier company. It is looking to raise new finance to fit each of its delivery vans with new equipment to allow improved parcel tracking for customers The senior management team of PYP have decided on a 10-year secured bond to finance this investment-

Which TWO of the following variables are most likely to decrease the yield to maturity of the bond?

A.

Changing the term of the bond from 1 0 years to 5 years to match the expected life of the new equipment

B.

The announcement of a new contract for PYP that will increase operating profits by 5°/o over the next 5 years.

C.

The senior management team decide to issue a convertible bond rather than a conventional bond

D.

The senior management team decide to issue an unsecured bond rather than a secured bond

F3 PDF/Engine
  • Printable Format
  • Value of Money
  • 100% Pass Assurance
  • Verified Answers
  • Researched by Industry Experts
  • Based on Real Exams Scenarios
  • 100% Real Questions
buy now F3 pdf
Get 65% Discount on All Products, Use Coupon: "ac4s65"
Next
A listed company has suffered a period of falling revenues and profit margins.
An all equity financed company reported earnings for the year ending 31 December 20X1 of...
Previous