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laiz [17]
2 years ago
5

Which would you rather be owning if there is a decline in market interest rates: long-term bonds or short-term bonds? why?

Business
1 answer:
Thepotemich [5.8K]2 years ago
3 0

Long-term bonds are preferable to hold if interest rates decrease because their price will rise more than the price of short-term bonds, providing a bigger return. Long-term bonds, however, are more susceptible to interest-rate risk. In addition, the longevity of the bonds, not only their term to maturity, is a major factor.

<h3>What are short-term bonds?</h3>

Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.

The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.

To know more about bonds, visit

brainly.com/question/22939161

#SPJ4

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accounts receivable increased by $1,000, inventory increased by $5,000, accounts payable decreased by $3,000, and accumulated de
Vitek1552 [10]

Answer:

- $9,000

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted

So, the cash effect would be

= - Increase in accounts receivable - increase in inventory - decrease in account payable

= - $1,000 - $5,000 - $3,000

= - $9,000

The accumulated depreciation is not a part of the working capital. Hence, ignored it

3 0
4 years ago
A powerful tool for sizing up the company's competitive assets and determining whether they can provide the foundation necessary
gregori [183]

Answer:

The correct answer is SWOT analysis

Explanation:

SWOT analysis stands for Strength, Opportunities, Threats and Weaknesses analysis, is defined or described as the framework which is used for analyzing as well as identifying the factors of the external and the internal, which have an impact on the product, person or product viability

SWOT analysis is one of the simple and the powerful tool or technique for the sizing up the resources and the capabilities, deficiencies and strengths of the company, its market opportunities as well as the external threats to its well being in future.

4 0
3 years ago
Common stock holders: Group of answer choices have one vote in the election of how the company operates. are last in line to rec
enot [183]

Answer:

are last in line to receive income.

Explanation:

Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.

However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.

Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.

5 0
3 years ago
Amelia has her money in a CD earning 2 percent interest. How long will it take for her money to double?
dusya [7]
It will take her 50 months if the interest grows every months. Here's the reason why:
=> in order to double up your money you need to have a 100% interest and since Amelia only have 2% interest, she needs 50 months to get the an interests that will double up her money.
6 0
3 years ago
Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also wit
777dan777 [17]

Answer:

b) policies and procedures manual.

Explanation:

A company's policies and procedures manual is essential for establishing norms and rules that will guide the company's operation.

Through corporate policies, it is possible to determine actions, conducts, practices and values ​​that the company adopts in order to achieve its objectives and goals, and demonstrate what are its fundamental values ​​that give this organization its own identity and the foundations that will make it different from other companies in the competitive market.

8 0
3 years ago
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