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77julia77 [94]
3 years ago
10

Albert just purchased a​ $1,000, 5.4%, 10minusyear bond when he heard about his friend Charlie who just bought a equal quality b

ond at​ $1,000; 9.5%, 10minusyear bond. What kind of risk did Albert just​ experience?
Business
1 answer:
svetoff [14.1K]3 years ago
8 0

Answer:

A) interest rate

Explanation:

Interest rate risk refers to the risk of purchasing a bond that offers a certain coupon and then the price of that bond changes due to changes in the market interest rate.

This can work in your favor, if the market interest rate decreases, you will have a bond that pays above market coupon, which will increase the market value of the bond. But if the market interest rate increases, the market value of your bond will decrease, and you will lose money. This is what happened to Albert, since the market interest rate increased, the value of Albert's bond decreased.

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How do I know if I have enough money to buy a Kate spade bag?
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Check the price of the bag and see if it is equal to the money you have collected
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3 years ago
Franklin, John, Henry, and Harry have decided to pool their financial resources and business skills in order to open up and run
Finger [1]

Answer:

Their business should be classified as a  Partnership.

Explanation:

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7 0
3 years ago
When optimizing your social media profiles, be sure to provide a consistent business description across all channels. Brainstorm
svlad2 [7]

Answer:

SEO-friendly

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These features cover different aspects from programming, through design, to the contents of the website, which get them to position themselves much better, with the increase in reputation, notoriety and presence on the network.

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2 years ago
Suppose that France and Austria both produce rye and wine. France's opportunity cost of producing a bottle of wine is 4 bushels
miv72 [106K]

Answer:

France has comparative advantage in production of wine

Austria has comparative advantage in production of rye.

4 bushels of rye for each bottle of wine

1 bottle of wine for each bushel.

b. 4 bushel of rye per bottle of wine.

Explanation:

France has comparative advantage in producing wine as it has opportunity cost of 4 bushels per bottle of wine. Austria has comparative advantage in producing bushels as it has opportunity cost of 10 bushels per bottle of wine. The both countries can gain advantage if they agree for 4 bushels per wine.

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3 years ago
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