A customer purchases $100,000 of corporate bonds at 80% in a margin account. The customer must deposit:

$16,000

Explanation:

Computation of what the customer must deposit for purchasing $100,000 of corporate bonds at 80% in a margin account

Since the minimum maintenance is the standard that is set by FINRA is the greater of 7% of the face amount or 20% of the market value.

Hence,

The bonds are purchased at 80% of $100,000 par, thus the first step is to find the 80% of $100,000. Calculated as :

80%×$100,000= $80,000

Second step is to find the 20% of $80,000 which is calculated as:

20% ×$80,000 = $16,000.

Third step is to find the 7% of $100,000, calculated as:

7% of $100,000 face = $7,000.

Based on the above calculation the greater amount is $16,000 which means that the customer must deposit the amount of $16,000 which is the greater amount.

do u ahve any choices

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: