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Alexxx [7]
3 years ago
9

Bond investors will experience capital gains when Group of answer choices market interest rates are high and falling. market int

erest rates are high and rising. the required rate of return exceeds the risk-free rate of return. more bonds are called than issued over a given period of time.
Business
1 answer:
solong [7]3 years ago
3 0

Answer:

A) market interest rates are high and falling

Explanation:

Bonds and interest rates have an indirect relationship.  When interest rates rise, bond prices tend to fall.

Bonds pay interests on a fixed rate. When market interest rates are rising, investors will prefer investing in other options due their high return as opposed to the fixed returns from bonds. Bonds become less attractive, leading to a decline in prices.

Buying Bonds when the interests are rising means buying at a cheaper rate. When interest rates start falling, bond prices will rise again due to their inverse relationship.

Capital gains occur when an investment is bought at a lower price and sold at a higher price.  Buying bonds when interests rate is high and selling when interests are low will lead to capital gains.

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Explanation:

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2 years ago
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Ash, Inc., has declared a dividend of $6.30 per share. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
alexira [117]

Answer:

$89.41

Explanation:

Data provided in the question:

Dividend declared = $6.30 per share

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Selling price of the stock = $94.45

Now,

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Thus,

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8 0
3 years ago
The first step in the screening process for potential markets and sites is to a. Identify the basic appeal of a market b. Select
koban [17]

C. The first step in the screening process for potential markets and sites is to identify the basic appeal of a market.

Identifying whether there is a fundamental demand for a business's product is the first step in looking for potential markets. screening process  plays a key role in determining this fundamental appeal.

Then it also helps in choosing where to market or produce goods would be simple if all countries' business environments were the same. Managers could rely on statistics that track the state of the local economy and examine projected returns on investments.

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1 year ago
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $82,000 of services on
frosja888 [35]

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5 0
2 years ago
Corporate social responsibility describes the firm's:
goldenfox [79]

Answer:

2. concern for the welfare of society.

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Corporate social responsibility refers to a concept that helps a company to take into account environment and social concerns in the business activities to make valuable contributions to society. According to this, the answer is that corporate social responsability describes the firm's concern for the welfare of society.

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