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1 year ago

Yields on municipal bonds are typically ___________ yields on corporate bonds of similar risk and time to maturity.

1 answer:

3 0

Yields on municipal bonds are typically lower than yields on corporate bonds of similar risk and time to maturity.

Municipal bonds, sometimes known as "munis," are a staple of portfolios that invest for income. High yield municipal bonds are a good option for investors who want higher returns. These bonds are riskier but pay out more than their investment-grade counterparts. It's likely that you won't ever get that money back. Here is how they function.

The issuer of a high yield municipal bond is a government. Private companies may also issue high yield bonds, however high yield municipal bonds may only be issued by state or local governments. High yield bonds are typically issued by governments to fund projects with ambiguous or unpredictable revenue. Typically, communities use traditional bonds to finance infrastructure projects like roads and schools. They save high yield instruments, meanwhile, for more speculative endeavours.

Learn more about corporate bond here brainly.com/question/13245345

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a. Ten years ago today, Excel Corp issued a regular coupon bond that had original maturity of 15 years. The bond pays interest s

Vlad [161]

Answer:

Total $1,271.0564

Explanation:

We have bond of 10 years ago, so the bond is left with 5 years of life

we need to calculate the present value ofthe cuopon payment:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 50 (1,000 x 5%)

time 10 (5 years 2 payment a year)

rate 0.02 (4% annual divide by 2 to get semiannually)

$50 \times \frac{1-(1+0.02)^{-10} }{0.02} = PV\\$

PV $449.1293

and the present value of the principal

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1000

time 5

rate 0.04

$\frac{1000}{(1 + 0.04)^{5} } = PV$

PV $821.9271

We add both to get the present value ofthe bond

PV c $449.1293

PV m $821.9271

Total $1,271.0564

6 0

2 years ago

See Hint If your income increases by 8%, and your quantity demanded of vanilla ice cream decreases by 18%, then vanilla ice crea

xz_007 [3.2K]

Answer:

The correct answer is B

Explanation:

Inferior goods are those goods or kind of goods whose demand declines or decrease when the income of the person or customer increases or rises. In other words, it means that the inferior goods demand is inversely associate to the customer or consumer income.

So, in this case, the income rises by 8% and the quantity demanded for the ice cream declines or falls by 18%, then the vanilla ice cream would considered as the inferior good.

3 0

2 years ago

Which of the following statements is most correct concerning a project with normal cash flows (i.e., a cash outflow in Year 0 fo

Bond [772]

Answer: D. If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Explanation:

Net present value (NPV) refers to the difference that exist between the present value of the cash inflows and that of the cash outflows for a particular period of time.

The net present value is used in capital budgeting to determine if a projected investment or project will be profitable or not. For a project with normal cash flows, if the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Therefore, the correct option is D.

7 0

1 year ago

Which of the following provides a consumer with the deepest comprehension and the greatest chance of accurate recall? a. Spreadi

horrorfan [7]

Answer:

Personal elaboration

Explanation:

Personal elaboration is the simplest and important form of recall memory. In this process, the consumer can recall the deepest comprehension and then there is the greatest chance to recall accurately.

Different strategies play a great part in this process.

To describe the place in details
Use very specific words
Show taste, smell, feeling, smell.
To show the comparison between two similar things
To use the exact words from another person
To describe something movement about objects
Show the feeling that how something has happened

3 0

2 years ago

According to the U.S. Census Bureau (www.census.gov), the median household income in the United States was $23,618 in 1985, $34,

Katena32 [7]

Answer:

The highest median income in purchasing power terms was in 1995, then 2005, 2015, and last 1985

Explanation:

To solve this question we must transform the median household income into comparable units. To do so we use the CPI data given in the problem.

We can arrange everything in a spreadsheet like the attached figure. In column A we have the years, in B the nominal median household income, in the third the CPI divided by 100, this will allow us to deflate and calculate the median income in constant 1982-1984 us dollars (since 1982-1984 will be the numeraire at 1). We do that by dividing column B by C, which is shown in column D.

With these values then we have all the median incomes in comparable units. We now can order and compare them

4 0

2 years ago