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fgiga [73]
2 years ago
11

"Which statements are TRUE about IO tranches? I When interest rates rise, the price of the tranche falls II When interest rates

rise, the price of the tranche rises III When interest rates fall, the price of the tranche falls IV When interest rates fall, the price of the tranche rises"
Business
1 answer:
horrorfan [7]2 years ago
5 0

The available options are:

A. I and III

B. I and IV

C. II and III

D. II and IV

Answer:

C. II and III

Explanation:

IO tranche which is an acronym for Interest Only tranche is defined as a form of tranche which earns interest only from a secured loan which is derived from Principal Only tranche.

However, Interest Only tranche is quite different from a typical bond, simply because when market interest rate increases the rate of prepayment decreases, which in turn makes the rate of maturity to be longer. Thereby when interest rates increase, prices increase, and vice versa.

Hence the true statements are:

II When interest rates rise, the price of the tranche rises

III When interest rates fall, the price of the tranche falls

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Nadusha1986 [10]

Answer:

18.24

Explanation:

Sustainable growth rate is the rate of growth a company can afford in the long term

sustainable growth rate = retention rate x ROE  

b = retention rate. It is the portion of earnings that is not paid out as dividends

Retention rate = 1 - payout ratio =

payout ratio = dividend / net income

retention rate = 1 - $44,640 / 72,000 = 0.38

Return on equity = net income / average total equity

= 72,000 / 150,000 = 0.48

g = 0.48 x 0.38 = 18.24%

3 0
3 years ago
Part 4: Marketing Strategy Describe the target market strategy for Lee’s business. Paint a very clear picture of who Lee will be
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Answer:

Part 4  

The focused on crowd would be secondary school and undergrads. Since the store is situated in the city, which is storage room to our present area according to given data. Focusing on youthful crowd would sure offer lift to deals.  

Market entrance use organization current assets and abilities to pick up benefit. It is least dangerous as we should simply keep up piece of the overall industry in showcase. It is like focusing on the database or clients we as of now have, the individuals who will purchase the item when we dispatch it.  

Market improvement advises us to catch new fragments and territory with the goal that we can build deal by focusing on new clients and at the same time growing organization branches to new areas.  

An item improvement center around explicit objective crowd and more often than not it is made for existing clients. It use organization quality and convey explicit items to existing clients.  

Broadening is the most dangerous technique as it requires market and item improvement. The market pattern is generally significant right now the organization can endure immense if the item neglects to catch showcase.  

The technique is straightforward comprehend the requirements of crowd and afterward convey the item. For this undertaking we need to consider the fulfillment in the region, comprehend what they are offering and how might we beat them by giving better highlights at same or less expense.  

Part 5 (since I don't have content that is being alluded, I will give general methodology that will work fine and dandy)  

The execution thought would expect us to accomplice up with nearby stores from the start and request that they promote our items until we open new stores in that area. We can have separate area showing our items and structures and what make us novel from other in the market. We can put accentuation on how our image convey quality items and how they are useful for focused crowd. We can likewise select a salesman on most mainstream areas that will help instruct the clients about our item and its advantages. We can likewise actualize new arrangements for opening week like purchase 2 sets and get 40% rebate. We need to push comparative techniques to pick up consideration and afterward promoting our items to new crowd.  

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3 years ago
Milton Friedman helped to establish the economic theory of monetarism. Which statement best describes the idea of monetarism
Ann [662]

Monetary policy is the best way to influence economic growth.

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Milton Friedman became a U.S. economist and Nobel laureate known as the most influential propose of loose-marketplace capitalism and monetarism in the 20th century.

The monetarist principle is an monetary concept that contends that changes in cash deliver are the maximum good sized determinants of the charge of monetary increase and the behavior of the commercial enterprise cycle.

Learn more about economic growth here brainly.com/question/1690575

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7 0
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<span>b) With an adjustable rate mortgage, the interest rate always increases after the first five years 

</span>
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The answer is most definitely google docs

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