IBM issues bonds with a sinking fund provision that the company can call 7% of the bonds at par value or the company can buy the required bonds on the open market. IBM will choose to buy the required bonds on the open market if the bonds are traded at in the market. Select one: a. $1850 b. $1116 c. $ 990 d. $1049 e. $1053

c. $990

Explanation:

I am assuming that the par value of the bonds is $1,000. If the market price of the bonds is above $1,000, IBM can choose to redeem them at par value. E.g. if market value is $1,049, they can redeem them at $1,000 resulting in a $49 gain.

But if the bonds are selling below par value (under $1,000), then IBM should redeem them at market price since they will spend less money. E.g. if the market price is $990, why would they buy them at $1,000?

no u can still get a job there u just have to be determined.

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"