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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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Answer:

The correct answer is C. Consolidated Omnibus Budget Reconciliation Act.

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Most people can keep insurance for up to 18 months. Some people may be able to keep it for a few months longer than that.

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Which of the following is false? Economists who advocate discretionary monetary policy argue that it is more likely to achieve t
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Explanation:

All of the above are correct.

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Option C by option B's explanation holds true because the entire amount the Government increased by was denied the private sector.

Option D is also true as not all Economists prefer rule-based monetary policy to discretionary monetary policy.

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3 0
3 years ago
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Greenwood Motels has filed a petition for bankruptcy but hopes to continue its operations both during and after the bankruptcy p
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Answer:

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A company reorganization takes place in front of the need for changing operating activities that are not bringing any profit to the organization or whose profit is minimal that it would be convenient to stop those processes. In some cases, reorganizations take place even when the firm has filed for bankruptcy.  

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