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True [87]
3 years ago
5

The Blackburn Group has recently issued 20minus​year, unsecured bonds rated BB by​ Moody's. These bonds yield 443 basis points a

bove the U.S. Treasury yield of​ 2.76%. The yield to maturity on these bonds is
Business
1 answer:
MArishka [77]3 years ago
4 0

Answer:

Explanation:

First, convert the basis points to a percentage or decimal;

1 basis point = 0.01% or 0.0001 as a decimal

Then 443 basis points as a decimal will be;

443 *0.0001 = 0.0443 or 4.43% as a percentage

Next, since the BB bond is 4.43% above the U.S. Treasury yield of 2.76%, find the Yield to maturity(YTM) by adding the 4.43% to the 2.76%;

YTM = 2.76% + 4.43%

YTM = 7.19%

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If you believe in the ________ form of the EMH, you believe that stock prices reflect all relevant information including histori
Alex

Answer:

A)semistrong

Explanation:

As regards to finance, the efficient-market hypothesis known as "EMH"

gives assertion that financial markets can be regards as "informationally efficient. ”

The EMH three forms which are:

1)weak

2) semi-strong

3)strong

it gives evaluation of the influence that MNPI(material Nonpublic Information ) has on market prices. It explains that when markets are efficient then the current prices reflect all information.

Semi-strong-form give a claim that prices gives reflection of all publicly available information, it also claims that

that prices instantly change to to gives a reflection of new public information.

The weak-form gives a claim that prices that is on traded assets such as bonds or stock gives reflection of

all publicly available information in the past . It should be noted that If you believe in the semistrong form of the EMH, you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm, but not information that is available only to insiders.

3 0
3 years ago
Kim thinks that she is going to love working for her new company, as it is very informal with a lot of cross-functional teams wi
alisha [4.7K]

Answer:

Organic

Explanation:

An organic structure in a company has an extremely flat reporting structure. Employees tend to interact among themselves and not along different management levels or direct reports.

This structure affects decision making which is more by consensus. Decision does not lie with a single manager.

In the given scenario the organisation where Kim wants to work is very informal with a lot of cross-functional teams with members from different departments.

This is an organic organisation structure

7 0
3 years ago
) Two restaurants are on the same block. One has been opened for 10 years and its a thriving business. The other one has been op
CaHeK987 [17]

Answer:

The one that has been operating for the past ten years.

Explanation:

This is so because, the bank will consider it of factors which will include:

1. the stage in the life cycle of the company.

2. the credit risk level of the company.

3. the attractiveness of the company to investors.

4. the going concern assumption of the company.

Overall, the interest rate will be dependent on the kind of credit rating of the company. for a company which has been existing for long and which is thriving, the credit rating will be low. hence the bank will be taking a lower risk in giving the loan; hence the lower interest.

However for a new entity with a higher credit risk, the bank is taking a high risk lending money to such company, hence it will loan the new company at a higher interest rate.

8 0
3 years ago
Assume that the government increases the unit excise tax on gasoline suppliers and also that people commute longer distances to
beks73 [17]

Answer:

Option D)

  • Price ⇒ increase
  • Quantity ⇒ indeterminate

Explanation:

Since the government increases the excise tax on gasoline, the price of gasoline should increase. Taxes always do that, they increase the price of everything. This increase in price should result in a lower quantity demanded.

If consumers start to drive longer distances because they decided to live in the suburbs, this will increase the quantity demanded for gas, and that increase int eh quantity demanded should also increase the equilibrium price.  

If we combine both situations, only one definite outcome will result: the equilibrium price of gasoline will increase. But regarding the quantity demanded, that is a little more complicated because the increase in price should lower the quantity demanded, not by a lot because gas is generally very price inelastic. On the other hand, longer rides should increase the quantity demanded, but we do not know by how much. So the change in quantity is indeterminate.

3 0
3 years ago
Read 2 more answers
Which of the following is true regarding capital projects funds? Multiple Choice Encumbrances accounting is not normally employe
Alona [7]

Answer:

All budgetary account are employed and budget to actual statement are prepared.

Explanation: Owing to a capital project fund, it is used in governmental accounting to track the financial resources used to acquire and /or construct a major capital assets. Once the assets has been completed, the fund is terminated.

8 0
3 years ago
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