1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Greeley [361]
4 years ago
8

You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 6% annual coupon. Both bonds have a 7% yield to

maturity, and the YTM is expected to remain constant. Which of the following statements is CORRECT? a. The price of Bond B will decrease over time, but the price of Bond A will increase over time. b. The prices of both bonds will remain unchanged. c. The price of Bond A will decrease over time, but the price of Bond B will increase over time. d. The prices of both bonds will increase by 7% per year. e. The prices of both bonds will increase over time, but the price of Bond A will increase at a faster rate.
Business
1 answer:
Yuri [45]4 years ago
4 0

Answer:

c. The price of Bond A will decrease over time, but the price of Bond B will increase over time

Explanation:

Bond A has a higher coupon rate than market thus, investor will accept to purchase the bond for a higher price until the YTM of this bond equals the market rate

Bond B is the opposite, is paying lower thus, will we purchase for less.

As times passes both will get their market value closer to the face value of the bond because, at maturity the bond will pay 1,000.

Making Bond A lower his price while B increases.

You might be interested in
The Yamaha Aggressive Growth Fund has an expense ratio of 1.83 percent. If you invest $58,500 in this fund, what is the dollar a
astra-53 [7]

Answer:

$1070.55

Explanation:

Expense ratio is the fee charged by fund managers for managing your investment.

so if you invest $58,500 assuming no return this year, the fee deductible would be simply 1.83% of $58,500

This amounts to $1070.55

Hope this helps.

3 0
4 years ago
At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. XYZ’s man
vivado [14]

Answer:

1. $13,500

2. $13,500

3. $336,500

Explanation:

1. Bad debt expense:

= Sales × Percent of sales uncollectible

= $900,000 × 1.5%

= $13,500

Therefore, the bad debt expense for the year 2019 is $13,500.

2. Allowance for Doubtful accounts = $13,500

3. For the end of 2019, what is the company's net realizable value:

= Accounts receivable - Allowance for Doubtful accounts

= $350,000 - $13,500

= $336,500

6 0
3 years ago
Pay for knowledge programs:
barxatty [35]

Answer:

D. base an employee's salary on the number of task skills he or she possesses.

Explanation:

Pay for knowledge programme as the name implies, is when an employer renumerate an employee for learning or developing new skills/task on the job.

If an employee develop new skills while working and then get renumerated, this will make the employee get himself or herself acquainted with the company. In order words, the employee will go out of his way to improve his efficiency in terms of increase in productivity due to the new task skill gained.

In this reward system, the employer rewards the employee with payment increase for leaning new task and skills on the job which is beyond their regular activity.

4 0
3 years ago
What is the drawback of carrying more inventory than is needed?
lbvjy [14]

Answer:

One of the most important disadvantages of excess inventory is the loss of revenue. Products depreciate over time and lose their initial value. So the longer you hold a product, the cheaper it gets.

7 0
3 years ago
Read 2 more answers
On the day before his presentation, Jamie was advised to.
stellarik [79]

Answer:

Go to the room beforehand and figure out what technology he needed to bring.

Explanation:

In bussiness presentation you wont always expect your client to provide you with the technology needed to give the presentation. It is best for you to ask and then come prepared rather than go empty handed.

5 0
4 years ago
Other questions:
  • Managerial accounting is an activity that helps managers determine costs of products and services, plan future activities, and c
    7·1 answer
  • In which of the following situations could a research analyst use multiple regression? A real estate development company wants t
    5·1 answer
  • On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and
    12·1 answer
  • The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic l
    7·2 answers
  • For her first speech, Rebekah plans to explain her interest in dance beginning with her childhood and continuing through her day
    6·1 answer
  • Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree t
    5·1 answer
  • I WANT TO THANKS EVERYONE FOR HELPING ME PASS MY QUIZZES
    13·2 answers
  • The primary responsibility for establishing and maintaining internal control rests with
    7·2 answers
  • When certain brands are exclusively targeted to certain demographic groups, that is part of this market
    14·1 answer
  • Slippery Slopes promised to arrange for a licensed California contractor to "work with" Water Slides Designs on the construction
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!