Answer:
An <u>increase</u> in the liquidity of corporate bonds will <u>increase</u> the price of corporate bonds and <u>decrease</u> the yield on corporate bonds, all else equal.
Explanation:
Bond liquidity refers to how quickly the bonds can be redeemed and converted to cash. This relates to the ease with which an investor can sell his bond.
High liquidity bonds are costly as they are more in demand and an attractive investment for the investors.
Thus, bond liquidity is directly related to it's price.
The yield of a bond refers to the market rate of return and represents the expectation of the bondholder with respect to rate of return.
A high price bond ( high liquidity) usually pays higher coupon rate of interest which is higher than the market rate of return on similar bonds i.e yield to maturity. This means price of a bond is inversely related to it's yield. Higher the bond price, higher the coupon payment, lower the bond yield.
Answer:
Health insurance Ata yan bhie33
Answer:
I think I should be systematic
Explanation:
proper planning entails being systematic.
Answer:
b.$70,000
Explanation:
The net income could be computed by two method
First method is
Net income = Revenue - expenses
= $100,000 - $30,000
= $70,000
And, the second method is
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$95,000 = $32,000 + net income - $7,000
So, the net income is $70,000
