The US Government Agrees to Guarantee a Bond Issue Planned

question 18

Multiple Choice

The US government agrees to guarantee a bond issue planned by Demurrage Associates. The value of this guarantee:
I. Value of the loan with guarantee minus value of the loan without guarantee
II. Is a subsidy to equity investors in the firm issuing guaranteed debt
III. Is a windfall gain to the buyers of the bonds
IV. Equals the value of a put option on the firm's assets with an exercise price equal to the bond's face value

• A) II only
• B) I, II, and IV
• C) I only
• D) III only

Grasp the concept of shifting demand from peak to off-peak periods to optimize utilization.

Apply forecasting as the foundation of effective revenue management systems.

Understand the basic principles of revenue management and its relevance to business operations.

Analyze the impact of differential pricing and its benefits to a firm.

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Definitions:

B2B Market

Business-to-Business market, where transactions are conducted between companies, rather than between companies and consumers.

Macro Variables

Broad variables that describe the overall context of an economy, such as GDP, unemployment rates, inflation, and interest rates.

Micro Variables

Small-scale factors that can affect a business or research outcome; often specific to a particular area or sector.

Demographic Variables

Characteristics of populations used in market research, such as age, gender, income, and education, to segment markets.