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3 years ago

As a general rule what percentage of debt to gdp will make a government bond yields spike

Business

2 answers:

Andreyy893 years ago

5 0

There is NO general rule for the percentage of debt to gdp that will make a government bond yields spike

Studentka2010 [4]3 years ago

3 0

Answer:

There is no general debt-to-gdp ratio rule because a bond yield depends on many other factors, not only on debt-to-gdp ratio.

For example, the United States has a very high debt-to-gdp ratio of over 100%, but the US bond is considered to be the safest bond in the market, has a high credit rating of AA+ according to Firtch, Moody's and S&P, and is a cheap bond because interest rates in the US are low, so the coupon payments are low as well.

The yield to maturity of a 10 year US bond is around 2%. Therefore, what all this information is telling us, is that even if debt-to-gdp ratio in the US continues to increase, the US bonds yields will probably continue to be stable. They will not spike because the debt-to-gdp ratio increases.

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If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms,.

nikitadnepr [17]

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.

<h3>What is a monopolistic competition?</h3>

A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants

A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.

Here are the options:

A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.

OC. they will wish to cooperate to make decisions about what quantity to produce.

O D. they will be unable to earn higher-than-normal profits in the long run.

To learn more about monopolistic competition, please check: brainly.com/question/21052250

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1 year ago

The problem with bank runs is not that ____________will fail; they are, after all, bankrupt and need to be shut down. The proble

shusha [124]

Answer:

Insolvent banks;Solvent banks.

Explanation:

A bank run can be defined as a situation where bank clients or depositors make withdrawals of their money simultaneously from banks as a result of being scared or afraid the depository institution will run out of cash (bankruptcy) and become insolvent.

The problem with bank runs is not that insolvent banks will fail; they are, after all, bankrupt and need to be shut down. The problem is that bank runs can cause solvent banks to fail and spread to the rest of the financial system.

In order to counter the problem with bank runs, the Federal Deposit Insurance Corporation (FDIC) was established on the 16th of June, 1933.

Furthermore, to avoid bank runs or other financial institutions from being insolvent, the Federal Reserve (Fed) and Central banks (lender of last resort) are readily accessible and available to give monetary funds to these institutions when they're running out of money and as well as regulate their activities.

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3 years ago

Jafina works for a Sunshine Manufacturing, where her team shares a machine and materials with another team that works a differen

Naily [24]

Answer: Pooled interdependence

Explanation:

Pooled interdependence is a loose organizational model in which each business unit carries out it's own separate functions, might not interact with the other units and does not depend on other units directly even though it contributes to the accomplishment of the organizational goals and success.

Pooled interdependence is often seen as the loosest form of interdependence in organizations. Although the departments may not interact directly and may not depend on each other directly in the pooled interdependence model, every department contributes it's own individual pieces to the achievement of the same overall puzzle.

This creates a blind, indirect dependence on each other and the performance of a department has an impact on others as a department's failures may lead to the failure of the entire organization.

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2 years ago

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A semi-annual coupon Corporate bond was purchased for settlement on November 12, 2017. The last coupon was paid on October 15, 2

Sergio [31]

Answer:

Explanation:

Bond is with semi annual coupon payments, pays every 6 month

a) Last coupon was paid on October 15, 2017. Next coupon will be paid six months(180 days) after October 15.

So the next coupon is paid on October 15, 2017 + 6 month = April 15, 2018

b) Settlement date is November 12, 2017

Last coupon payment date is October 15, 2017

The number of days passed between settlement date and last coupon date = Settlement date - last coupon payment date

= November 12, 2017 - October 15, 2017 = 27 days

c) Days in current coupon period = Next coupon payment date - settlement date

Next coupon payment date = April 15, 2018

Days in current coupon period = April 15, 2018 - November 12, 2017 = 153 days

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3 years ago