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
vodka [1.7K]
3 years ago
7

Rashid has been purchasing bonds from a company that has recently gotten poor ratings for its ability to pay Its vendors. As a r

esu
Increased risk, the bond's interest rate has increased. What type of risk does Rashid face as an Investor?

A

taxability risk

• B.

Inflationary risk

C.

currency risk

D.

credit risk
Mathematics
1 answer:
svet-max [94.6K]3 years ago
5 0

Answer:

The answer is letter D, credit risk.

Step-by-step explanation:

A bond is considered to be a contract between two occurring parties. It allows companies to borrow money from people (investors). These investors purchase the bond and are given a certain interest for a particular period of time. The rate varies according to the economic situation or the company's standing. This affects the supply and demand for the bond.

Remember that the price of the bond and the interest rate are indirectly proportional. This means that as the price of the bond increases, the interest rate decreases and vice-versa.

In the situation above, Rashid is facing a credit risk as an investor. He has been purchasing bonds from a company that has recently gotten a poor rating. This means that the company is not performing well. This can affect the amount of money (including the interest) that will be paid back to Rashid. There is a chance that some of the amount of money he invested will not be returned to him. It was also mentioned that the bond's interest rate has increased. This means that the bond prices will decrease and thus the number of bond investors will also decrease. The issuer of the bond in this situation can have a hard time paying the investor back.

You might be interested in
Help please! I have to do this math test and I dont understand ​
n200080 [17]

Answer:

y=1x+1

Step-by-step explanation:

y=1x+1 gradient= 1 and y-intersept = 1

3 0
4 years ago
Helen had Php7500 for shopping money. When she got home, she had Php132.75 in her pocket. How much did she spend for shopping?
Nataly_w [17]

Answer:

Step-by-step explanation:

Helen had Php7500 for shopping money

she had Php132.75 in her pocket

she spend= 7500.00-132.75

=7367.25answer

4 0
3 years ago
Can somebody help me on this thank you it will mean a lot
MaRussiya [10]

Answer:

your will be A

Step-by-step explanation:

hoped i helped and can i get brainiest pls

5 0
3 years ago
A telephone pole has a wire to its top that is anchored to the ground. The distance from the bottom of the pole to the anchor po
Bumek [7]

Answer:

The height of the pole is 105ft,

Step-by-step explanation:

Let us call h the height of the pole, then we know that the distance from the bottom of the pole to the anchor point is 49, or it is h - 49.

The wire length d is 14 ft longer than height h, hence

d= h+14.

Thus we get a right triangle with hypotenuse d= y+14, perpendicular  h, and base h-49; therefore, the Pythagorean theorem gives

(h-49)^2+h^2 = (h+14)^2

which upon expanding we get:

h^2-98h+2401 = h^2+28h+196

further simplification gives

h^2-126h+2205=0,

which is a quadratic equation with solutions

h =21ft\\h = 105ft.

Since the first solution h =21ft will give the triangle base length of 21ft-49ft = -28ft which is negative; therefore, we disregard it and pick the solution h = 105ft.

Hence, the height of the pole is 105ft.

3 0
3 years ago
Someone please help ASAP will give brainliest
Svetach [21]

Answer:

A

Step-by-step explanation:

The degree is cubic (3) and there are 3 terms X^3, X^2, X

7 0
3 years ago
Other questions:
  • A garden snail travels on rate of 2.6 feet per minute at this rate how long will it take for the snow to travel 65 ft
    11·1 answer
  • What is the the union for the following sets.
    8·1 answer
  • AB is parallel to CD.
    15·1 answer
  • Isaac planted 12 pepper plants. he planted twice as many green pepper plants as red pepper plants. how many green pepper plants
    12·1 answer
  • I NEED HELP ASAP it’s due today!
    13·1 answer
  • Rotate (-7,5) 90 degrees clockwise about the origin and then translate the new point left 6
    5·1 answer
  • "Carlos drew a triangle with sides 8 inches, 15 inches and 17 inches. Did he draw a right triangle?"
    9·2 answers
  • Choose ALL the shapes with at least 1 pair of perpendicular sides.
    9·2 answers
  • I gvee brainlilsttttt
    5·2 answers
  • Dylan drinks 2/3 of a glass of water for breakfast, 1 1/4 glasses for lunch, and 2 glasses for dinner. How much water did he dri
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!