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
CAN U GUYS PELASE ANSWER THE SIMULTANEOUS EQUATION QUESTION QUESTIONS ASAP. THIS IS EXTREMELY URGENT. Solve it by using the subs
prisoha [69]

Answer:

a ) y = 1 and x = -1

d) y = 5 and x = -1/2

Step-by-step explanation:

<h2><u>Substitution method</u></h2><h2><u>Question a</u></h2>

y = x+ 2

y = 2x + 3

<em>we can make the first formula in terms of x , so we can place in into the second formula</em>

y = x + 2

x = y -  2

now put y - 2 where x is in the second equation

y = 2x + 3

y = 2(y - 2) + 3

y = 2y - 4 +3

now solve

4 - 3 = 2y -y

y = 1

since y = 1 we can find what x is by putting into the first formula

y = x +2

x = y - 2

x = (1) -2

x = -1

<h3><u>hence y = 1 and x = -1 </u></h3><h3><u /></h3><h2><u>Question d</u></h2>

y = 2x + 6

y = 4 - 2x

<em>we can make the first formula in terms of x , so we can place in into the second formula</em>

y = 2x + 6

y - 6 = 2x

x = (y-6)/ 2

now place (y-6)/2 where x is in the second formula

y = 4 -2x

y = 4 - 2 (\frac{y - 6}{2})

now solve

the multiplication by 2 and division by 2 are cancelled out

hence making the simplified equation as:

y = 4 - y + 6

2y = 4 + 6

2y = 10

y = 5

now place this into the first equation

y = 2x + 6

y - 6 = 2x

x = (y-6)/ 2

x = (5-6)/2

x = -1/2

<h3><u>hence y = 5 and x = -1/2</u></h3>

6 0
4 years ago
Please help ASAP Meteorologists are planning the location of a new weather station to cover Santa Cruz, Morgan Hill, and Gilroy,
Likurg_2 [28]

Answer:

(-1, -2.5)

Step-by-step explanation:

(3, 0) is the midpoint between (2, 2) and (4, -2)

(-5, -5) (3, 0) the midpoint between these two points is

(-5 + 3) / 2 = -1, (-5 + 0) / 2 = -2.5

4 0
4 years ago
Simplify the fraction 228/38
Leviafan [203]
The answer is 6 .....
3 0
3 years ago
Read 2 more answers
Simplify (x+2)^2 divided by x+2
Gennadij [26K]
(x+2)^2=(x+2)(x+2)
remember
25/5=5 aka
(5^2)/5=5
so
(x^2)/x=x

((x+2)^2)/(x+2)=x+2
7 0
3 years ago
Read 2 more answers
A rectangular prism has a length of 4 1/2 centimeters, a width of 4 1/2 centimeters, and a height of 6 centimeters. Sally has a
n200080 [17]

Step-by-step explanation:

volume of prism = 4 1/2 × 4 1/2 × 6

= 9/2 × 9/2 × 6

= 121.5 cm³

storage container = 143 cm³

Difference = 143 - 121.5 = 21.5 cm³

5 0
2 years ago
Other questions:
  • A 1L bag of Normal Saline must infuse over 6 hours using tubing calibrated to deliver 20gtts/mL. How many drops per minute shoul
    5·1 answer
  • The graphs below have the same shape. What is the equation of the blue<br> graph?
    6·1 answer
  • Use algebra tiles to model (2x+1)(3x+3)
    10·2 answers
  • Please answer asap (don't need explanation)
    15·1 answer
  • May somebody help me please
    13·1 answer
  • <img src="https://tex.z-dn.net/?f=%24%5Coverline%7BBY%7D%24" id="TexFormula1" title="$\overline{BY}$" alt="$\overline{BY}$" alig
    15·1 answer
  • Which number has a value between -8.423 and -8.395?
    9·1 answer
  • Simplify by adding
    13·1 answer
  • What are the solutions of the equation (x + 2)2 + 12(x + 2) – 14 = 0? Use u substitution and the quadratic formula to
    8·1 answer
  • The product of 7 and a number is greater than 42. If the number is a whole number less than 10 , what could the number be?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!