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
Damm [24]
3 years ago
7

If interest rates in general were to fall, 1. the prices of existing bonds would rise 2. the prices of existing bonds would fall

3. yields to maturity would rise 4. yields to maturity would fall
Business
1 answer:
IRINA_888 [86]3 years ago
7 0

Answer:

1. the prices of existing bonds would rise

Explanation:

General Interest rates and price of a bond are inversely related. The market interest rate also reflects an investors expected rate of return also referred to as yield to maturity i.e YTM.

Mathematically, price of a bond is the present value of it's future stream of coupon payments as well as principal repayments discounted at investors expected rate of return i.e YTM.

So, when market interest rates fall in general, this would lead to a rise in the price of bonds as general interest rates represent yield to maturity.  

You might be interested in
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in thi
Greeley [361]
Which of the following statements is generally true about change in the workplace ? a ) Most people accept change easily . b) Smart companies can avoid change altogether. c) Change in the workplace fairly infrequently d) Individuals can learn to manage the change in their lives.
3 0
3 years ago
Splish Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $110,00
kipiarov [429]

Answer: $155,520

Explanation:

Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost

Interest Cost

= Interest rate * Projected benefit obligation

= 0.09 * 728,000

= $65,520

Pension Expense = 110,000 - 30,000 + 10,000 + 65,520

= $155,520

3 0
3 years ago
A ___________ loan is one that is backed up by something of value.
zlopas [31]

Answer:

secure

Explanation:

A secure loan is backed by collateral or assets of value

7 0
3 years ago
Read 2 more answers
What happens when you do not make a decision?
DENIUS [597]
Making decisions are always an important part. But failure in making decision may cause something unexpected. in most of the time a right decision at right time helps a lot... so for making a good decision one should follow some steps- like what are the good aspect if someone take this decision and what are the negative impact of this decision and if the probability of positiveness is more... than one should take that decision.. and if someone have confusion between what to do? and have to decide which decision to take among many ideas in mind  one should do the same steps but this time he/she should write them in a page for each decision a single page and than take the one which is prominent..
4 0
3 years ago
Read 2 more answers
What is a credit card balance
QveST [7]
That's the amount of charges owed to the credit card company. 
4 0
3 years ago
Read 2 more answers
Other questions:
  • The ________ run by the u.s. department of labor enables public employment agency counselors to advise applicants about local an
    11·1 answer
  • What is the name of the economic system where the government regulates the prices and the supply of the goods?
    12·1 answer
  • Team cohesiveness tends to be higher when A. the team is sufficiently small. B. members have limited interaction. C. entry into
    5·1 answer
  • Venus LLC is a large monopolistic electronic firm. The firm has been putting a lot of pressure on some of the complementor compa
    15·1 answer
  • For each market listed below, determine whether it is best characterized as a Cournot oligopoly, Stackelberg oligopoly, or Bertr
    9·1 answer
  • Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based
    13·1 answer
  • What kind of applications can improve the quality of your blog
    12·1 answer
  • Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which
    9·1 answer
  • A first saving account pays 5% compounded annually. A second saving account pays 5% compounded continuously. Which of the two in
    5·1 answer
  • Suppose that three firms make up the entire wig manufacturing industry. One has a 60% market share, and the other two have a 20%
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!