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gizmo_the_mogwai [7]
3 years ago
13

An investor is considering buying one of two 10-year, $1,000 face value, noncallable bonds: Bond A has a 7% annual coupon, while

Bond B has a 9% annual coupon. Both bonds have a yield to maturity of 8%, and the YTM is expected to remain constant for the next 10 years.Which of the following statements is CORRECT?A)Bond B has a higher price than Bond A today, but one year from now the bonds will have the same price.B)One year from now, Bond A's price will be higher than it is today.C)Bond A's current yield is greater than 8%.D)Bond A has a higher price than Bond B today, but one year from now the bonds will have the same price.E)Both bonds have the same price today, and the price of each bond is expected to remain constant until the bonds mature.
Business
1 answer:
klemol [59]3 years ago
3 0

Answer:B. One year from now Bond A's price will be higher than it is today.

Explanation:A Noncallable bond is a bond whose investment cannot be redeemed before its maturity date by the issuer, it can only be redeemed after the payment of a penalty.

The issuer of a noncallable bond makes itself vunerable to interest rate risk mainly because, at the issuance of the bond, it is locked to the interest rate it will pay only when the bond's maturity date is achieved.

Coupon rate is the rate at which a bond repay its owner,it can be annual.

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deff fn [24]

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her beginning basis is $16500.

Explanation:

basis of partnership

= money contributed + adjusted basis of equipment contributed

= $7000 + $9500

= $16500

Therefore, her beginning basis is $16500.

6 0
3 years ago
A strategy of ____________ reciprocating both the frequency and magnitude of the other bargainer's concessions was found to be m
schepotkina [342]

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Always and less

Explanation:

Strategy: The strategy is a plan to do something with respect to achieve the company objectives or individual objective

Without preparing the strategy no one could accomplish their target.

For frequency and magnitude of other bargainer concessions, the strategy should always be reciprocatinvg and found to be more effectove as if concessions are obtained from other bargainer that involves less reciprocation

7 0
3 years ago
Faye files a suit in a state court against Gas Station Stop, claiming employment discrimination. Gas Station loses the suit and
densk [106]

Answer:

a.

Explanation:

Based on the information it can be said that in this scenario either party can appeal the decision to the United States Supreme Court if a federal question is involved. This means that there is an issue within the case that involves the constitution or other federal laws. These types of issues are cause for being able to take the case to the Supreme court.

7 0
3 years ago
A severe freeze has once again damaged the Florida orange crop. Explain the impact of the weather condition on the market for or
Elanso [62]

Answer:

Because the freeze has damaged the orange crop, the supply curve wil shift to the left, since suppliers now have less oranges available for sale.

This will cause the equilibrium quantity to fall, because there is less produce available, and the equilibrium price to rise, because all else being equal demand remains unaffected, and now, more consumers will scramble for a lesser amount of the good.

6 0
4 years ago
Let S(x) denote "x obeys the speed limit," where the domain is the set of all drivers. Express the negation of the proposition "
Ira Lisetskai [31]

Answer:

Using Quantifiers: ¬∃x¬S(x)≡ ∀xS(x)

English Language: All drivers obey the speed limit

Explanation:

The domain is the set of all drivers i.e. the domain of drivers

Let S(x) be the predicate “x obeys the speed limit.”

The above statement can be written as ∃x¬S(x),

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In English Language, it is ->, all drivers obey the speed limit

8 0
3 years ago
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