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77julia77 [94]
4 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]4 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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g In translating the financial statements of a foreign subsidiary into the parent’s reporting currency under the current rate me
Usimov [2.4K]

Answer:

The translation adjustment is a function of the foreign subsidiary's net assets.

3 0
3 years ago
What is the relationship between a non-callable, option-free fixed rate bond's price and its yield?
Sophie [7]

Answer:

The relationship is that the price for these types of bonds is lower as the Yield is fixed and do not change over time.

The price of a Non-callable bond is cheaper than the price of the Callable bond as the Yield for a Non-callable bond is fixed. This suggest that the investor knows exactly what is the interest that is going to receive until the maturity of the bond.  

5 0
3 years ago
A company has quick assets of $ 300,000 and current liabilities of $ 150,000 . The company purchased $ 50,000 in inventory on cr
anzhelika [568]

A company has quick assets of $ 300,000 and current liabilities of $ 150,000. The company purchased $ 50,000 in inventory on credit. After the purchase, the quick ratio would be d. 1.75.

Inventory refers to all of the gadgets, items, products, and materials held with the aid of a commercial enterprise for selling within the marketplace to earn a profit. instance: If a newspaper supplier makes use of an automobile to supply newspapers to the customers, handiest the newspaper may be taken into consideration in inventory. The vehicle can be dealt with as an asset.

Inventory is an asset due to the fact a company invests money in it that it then converts into sales while it sells the inventory. stock that doesn't promote as quickly as anticipated may become a liability.

The principle feature of stock is to offer operations with ongoing delivery of materials. To gain this feature correctly, your enterprise has to attempt to discover a sweet spot between an excessive amount and too little, without ever going for walks out of inventory.

quick assets = 300000

quick liablities= 150000

inventory on credit

quick assets = 350000

quick liablities= 200000

quick ratio = 350000/200000

                   = 1.75

Learn more about inventory here brainly.com/question/25947903

#SPJ4

6 0
2 years ago
On July 4, 2018, Wyoming Mining Company purchased the mineral rights to a granite deposit for $1,600,000. It is estimated that t
kiruha [24]

Answer:

The amount of the Depletion Expense recognized for 2018 would be 240,000

Explanation:

In order to calculate the The amount of the Depletion Expense recognized for 2018, we have to calculate first the depletion expense per ton.

Hence, Depletion expense per ton = $1,600,000/400,000 = 4

Therefore, if the Depletion expense per ton is 4, and during 2018 60,000 tons of granits were sold then the Depletion expense to be recognized for 2018  will be=60,000*4

          = $240,000. Amount of the Depletion Expense recognized for 2018

5 0
3 years ago
New shale gas deposits are found in North Dakota :
lisabon 2012 [21]

Answer and Explanation:

When the deposits with respect to new shale gas found in north dakota so there would be the both shifts i.e. long run  aggregate supply and the short run aggregate supply

And on the other hand when the hot weather would lead to less crop in the midwest so there should be the shift in the short run aggregate supply

Therefore the same would be considered and relevant too

3 0
3 years ago
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