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andriy [413]
2 years ago
5

Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of lon

g-term bonds versus short-term bonds? Your answer must be supported with examples and academic citations.
Business
1 answer:
Doss [256]2 years ago
5 0

Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.

<h3>What is the interest rate?</h3>

The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.

The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.

Learn more about bond prices, here:

brainly.com/question/15518377

#SPJ1

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When talking about economic resources, capital refers to which of the following?
alexandr402 [8]
The top dog, the biggest one
3 0
3 years ago
Read 2 more answers
Suppose the economy begins at potential output when there is a severe and long-lasting stock market crash. In the short run we w
ANEK [815]

Answer:

Spending, production and employment to fall

Explanation:

A stock market crash brings about an economic condition of a recession or a slump.This brings out reduced economic activity and inflationary pressure builds up. This reduces purchasing powers of people and they demand less thus their spending falls. With increasing costs and less demands the firms are forced to cut down on production to combat costs and they also retrench causing unemployment.

Since the economy is at its potential output level, short term expansionary policies may not work.

Hope that helps.

5 0
3 years ago
1) If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consiste
zhenek [66]

Answer:

False

Explanation:

It is FALSE that If you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, this is consistent with the weak form of EMH.

Weak Form of Efficiency Market Hypothesis states that individuals cannot use past knowledge, facts, or occurrence about stock to determine its future price.

In other words, past data or evidence has no connection with existing market prices.

Hence, if you make superior returns by buying stocks after a 10% fall in price and selling stocks after a 10% rise, that shows the existence of pattern or past information about the stock rising or falling prices determine future occurrence. This situation contradicts the Weak form of EMH

6 0
3 years ago
On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable
lisov135 [29]

Answer:

C. $56,700

Explanation:

From the accounting equation which shows the relationship between the elements of a balance sheet namely;asset, liabilities and equity.

Asset =  liabilities + equity

Total assets = $15,000 + $12,300 + $3,100 + $35,000 = $65,400

Total liabilities = $8,700

Stockholders’ equity = $65,400 - $8,700

= $56,700

The stake of the owners of the company is $56,700

5 0
3 years ago
How fast does q 500 Hz wave travel if its wavelength is 0.5m
Masteriza [31]

Where v is velocity/speed

f is frequency

and lambda is wavelength

v=(500)(0.5)= 250 m/s

Hope this helps!

6 0
3 years ago
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