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Tema [17]
3 years ago
13

Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn

on similar bonds (market rate).
True / False.
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

The correct answer is False.

Explanation:

The above statement is related to the bonds issued at a discount, where in the proposed scenario, the bonds will only be sold at a discount when the market interest rate is higher than that of the contract. When the opposite happens, the operation cannot be performed, since no benefits would be obtained.

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A 25-year old client with a low risk tolerance wishes to invest in bonds. The client has invested in equities before, but has no
Gnesinka [82]

Answer: C. AA-rated short-term bonds

Explanation:

It was stated that the client has a low risk tolerance. Therefore, to reduce the credit risk, investment grade bonds are appropriate (BBB or higher). To reduce the interest rate risk, short-term maturities will be preferable to long-term maturities. Both of these factors will result in a safer bond investment.

7 0
3 years ago
Select the correct answer.
valkas [14]

Answer: The answer would be C. Collective bargaining

4 0
3 years ago
When a company sets a high price for a new product with the intention of reducing the price in the future, it is using the _____
bazaltina [42]

Answer:

Market Skimming

Explanation:

Market skimming is a pricing technique whereby producers and organizations set high introductory prices in order to attract buyers with strong affinity for the products and who possess the resources to buy it, Then over time continue to gradually reduce to products so others in the market could afford it. It is also known as price skimming, involves setting high prices for a product just launched in the market. A highly selective market is where techniques like this thrives.

8 0
3 years ago
Read 2 more answers
Yuri wants to pay for his new chair using a check. What must he consider before using that method of payment? Yuri must check hi
Dimas [21]

Answer:

Yuri must be sure he has enough left in his checking account for any expenses and automatic payments.

8 0
3 years ago
At point A on a demand curve, price is $10 and quantity demanded is 100. At point B, price is $12 and quantity demanded is 80. W
Jet001 [13]

Answer:

Price elasticity of demand is -1

Explanation:

Price elasticity of demand is defined as the degree of responsiveness of quantity demanded to changes in the price of a product. It is calculated by finding ratio of percentage change in demand to percentage change in price.

Percentage change in demand= (80-100)/100= -20/100

Percentage change in demand= -0.2

Percentage change in price= (12-10)/10

Percentage change in price= 2/10= 0.2

Elasticity= Percetage change in quantity demanded/ percentage change in price

Elasticity= -0.2/0.2= -1

5 0
3 years ago
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