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
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.

You might be interested in
The Pack Company purchased an office building for $9,000,000. The building had an estimated useful life of 40 years and an expec
xz_007 [3.2K]
<h2>Depreciation = Cost Price --Salvage/Useful Life</h2><h2>=9,00,000-1,00,000/40</h2><h2>=8,00,000/40</h2><h2>= 20,000</h2><h2 /><h3>Explanation:</h3><h3>Depreciation is 20,000</h3><h3></h3>

8 0
2 years ago
Which of the following is a regular outcome of being late to work
Grace [21]
A regular outcome could be a lot of hate from co-workers and your boss, and eventually you might be put on admin leave or fired.
6 0
3 years ago
You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk
kap26 [50]

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

8 0
3 years ago
Karlie wants to be an anthropologist. What is the academic requirement for this job?
Harlamova29_29 [7]
There are a couple of academic requirements for an anthropologist job. If Karlie wants to be start at an entry level anthropologist job she will need a bachelor's degree. If Karlie wants to start at an advanced level, she will need a doctoral or master's degree. 
8 0
3 years ago
Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for July: Increase in estimated ret
Dvinal [7]

Answer:

$873,200

Explanation:

The computation of the cost of merchandise sold is shown below:

= Merchandise inventory, July 1  + Purchases - Purchases returns and allowances - Purchases discounts - Freight in - Merchandise inventory, July 31

= $49,300 + $985,500 - $33,500 - $19,700 - $13,800 - $94,600

= $873,200

We simply added the purchase amount and deduct all other items except Increase in estimated returns inventory to the opening balance of merchandise inventory

4 0
3 years ago
Other questions:
  • Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you hav
    11·1 answer
  • Normative economic analysis involves value judgments and opinions. purely descriptive statements. testable hypothes
    14·1 answer
  • Which photo Grapher is famous for his or her work at Yosemite national park?
    11·2 answers
  • It costs Oriole Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit.
    10·1 answer
  • Eastern europe has become successful at manufacturing automobiles and ________ products.
    6·1 answer
  • Making a good first impression is vital, since we tend to form an opinion in about
    8·2 answers
  • Hanson, Inc. requires its marketing managers to submit estimated cost-volume-profit data on all requests for new products, or ex
    9·1 answer
  • 4. _______ are the fastest growing segment of today's workforce. They are optimistic, inventive and individualistic; they seek a
    11·1 answer
  • Most standard portfolio analysis methods evaluate strategic business units (sbus) on their performance in two important dimensio
    14·1 answer
  • Question 6 of 10
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!