Goldman Sachs recently purchased $2.8 billion of PDVSA bonds at $0.32 on the dollar from a...
Goldman Sachs recently purchased $2.8 billion of PDVSA bonds at $0.32 on the dollar from a third party. Congress in Venezuela is condemning this purchase as support of the troubled government and its leader, Maduro. If Goldman purchased these bonds at such a deep discount, what interest rate/dividend are they receiving on the securities?
Homework Answers
The bonds of PDVSA were the source of 90% of the dollars that were brought to Venezuela's economy. The economic condition of Venezuela was very bad and they found it difficult to provide two square meals to their citizens. In such a situation the purchase of PDVSA bonds by Goldman Sachs is mainly for two reasons. One, since these bonds are the only source of dollars for Venezuela so they will utilize whatever money they have on paying the interest on the bond. The bonds are expected to provide a double digit yield. The interest on these bonds will be high as many foreign investors are interested to buy the bonds. So they are high valued bonds.
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Goldman Sachs recently purchased $2.8 billion of PDVSA bonds at
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Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
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Linda Clark received $223,000 from her mother's estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf a. Common stock was purchased at a cost of $99,000. The stock paid no dividends, but it was sold for $161,000 at the end of three years. b. Preferred stock was purchased at its par value of $54,000. The stock paid a 6% dividend (based on par value) each year for three years. At...
Check my work 2 Linda Clark received $221,000 from her mothers estate. She placed the funds into the hands of a broker, who purchased the following securities on Linda's behalf a. Common stock was purchased at a cost of $98,000. The stock paid no dividends, but it was sold for $160,000 at the end of three years. b. Preferred stock was purchased at its par value of $53,000. The stock paid a 6% dividend (based on par value) each year...
QUESTION 10
Consider the monthly data, including the estimates for March
2020, and the information in the articles. Which of the following
is the best analysis of and prediction for the money market in the
U.S. economy for the next few months?
a.
Shortages are causing panic buying by households, which has
increased money demand. Lenders are increasing their lending to
keep up with the needs of households and businesses. Money demand
is increasing more than money supply.
b.
Shortages...
Respond to the following prompt with your original
thoughts, at least 200 words, utilize academic sources to support
your point.
Is the WACC an estimation of the real cost of capital(explicit
cost of money) or an opportunity cost tied to a particular decision
based on market required returns? You use the following points to
discuss this question or utilize your own points.
1. Projects of different levels of risk should have different
associated discount rates.
2. The WACC reflects the...
Questions: For Kroger deposits in transit: What is
the account titled Store deposits in-transit (refer to footnote 1)?
This is not an account you will find on the majority of company
financial statements. Why does Kroger include this account? Is it
odd that this account is larger than the cash balance? How do you
explain this?
Information Needed to Answer Questions:
Jan. 28, 2017 Jan. 30, 2016 $322 910 1,649 7,852 (1,291) 898 $ 277 923 1,734 7,440 (1,272) 790 9,892...
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