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spin [16.1K]
4 years ago
15

You will be paying $10,000 a year in tuition expenses at the end of the next 2 years. Bonds currently yield 8%. a. What is the p

resent value and duration of your obligation? b. What maturity zero-coupon bond would immunize your obligation? c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 9%.

Business
1 answer:
irina [24]4 years ago
4 0

For complete answer find complete 5 attachments

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The underlying reason why trade benefits both sides of a trading arrangement is rooted in the concept of __________________.
Marysya12 [62]

Answer:

opportunity cost

Explanation:

The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.

Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.

Therefore, the right answer is Opportunity cost.

7 0
3 years ago
"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate reco
NeTakaya

Answer: sell covered calls

Explanation:

A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.

It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.

7 0
4 years ago
The oldest recorded effort to organize a fire fighting service dates back to the:
Zepler [3.9K]
Dates back to the Roman Republic.
7 0
3 years ago
N
ankoles [38]

Answer:

Stocks is the type of investments that offers both capital gains and interest income.

4 0
3 years ago
An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from amo
xenn [34]

Answer:

True, an ethical issue is an identifiable problem/ situation or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical.

Explanation:

Ethical issues arise when a given decision scenario or activity creates a conflict with a society's moral principles. Both businesses and individuals can be involved in these conflicts and sometimes these conflicts can be legally dangerous as some alternative to solve them might breach a particular law.

4 0
4 years ago
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