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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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3 years ago
The financial statement that reports the changes in the retained earnings and common stock for a period of time is known as the.
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<h3>What are the three financial statements?</h3>

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8 0
1 year ago
Intelligent Tool Corp. is planning to set up a production plant abroad. It has selected five potential countries based on their
Alex_Xolod [135]

Answer:

e. Country B, where education is well-developed and social stratification is lacking.

Explanation:

Country B will be the best option because the population is well-developed in terms of education, so there will be availability of skilled labour for the production plant.

Also lack of social stratification means there is no well-developed social stratification into upper, middle, and lower classes. Success will be due to individual achievement, so the people will be motivated to work hard and exploit the opportunity of growing in the new production plant.

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3 years ago
The beliefs and values you were raised with are part of your ____________.
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I am guessing culture, because your culture is your tradition and religion which are your beliefs and values.
5 0
3 years ago
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A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit t
IRISSAK [1]

A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to:

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6 0
3 years ago
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