If the fed buys more bonds from the public, and increases the price it is willing to pay for the bonds. Interest rates will rise.
A bond is a sort of security used in finance where the issuer owes the holder a debt and is required, depending on the terms, to repay the principal and interest on the bond at the maturity date. Interest is often paid at regular intervals.
An IOU-like debt security called a bond. Bonds are issued by borrowers to attract capital from investors ready to extend a loan to them for a specific period of time. When you purchase a bond, you are making a loan to the issuer, which could be a corporate, government, or municipality.
Learn more about Bonds here
brainly.com/question/25596583
#SPJ4
Answer:
<u>a. True</u>
Explanation:
The term foreign direct investment (FDI) is basically used to classify the number of capital investments and other non-financial investments made by foreign companies into a host country.
For example, if the U.S receives witnesses an increase in new Chinese-owned businesses in the past year, then those investments amount once quantified would make up part of the U.S foreign direct investment (FDI) for the year. This would come would benefit, while also carrying some cost such as having an unfavorable balance of payment.
Answer:
320 Investments—Debt and Equity Securities
10 Overall
25-4 Recognition
Answer:
$140,000
Explanation:
Computation of the company’s net income for 2014.
Using this formula
Net income=Revenue – Expenses
Let plug in the formula
Net income=$200,000 - $40,000+$20,000
Net income= $140,000
Therefore the company’s net income for 2014 will be $140,000
Answer: 8.36%
Explanation:
The growth rate being thrown in there was in an effort to confuse you into using the Dividend Discount Model.
This is a Preferred Stock however and is calculated differently as such,
Net Price = Dividends / rate
Making rate the subject we have,
r = Dividends / Net Price
So plugging in the figures we have,
r = 3/ 35.9
r = 0.08356545961
r = 8.36%
The market required rate of return on your firm's preferred stock is 8.36%.