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
Vanyuwa [196]
2 years ago
10

If an investor's holding period is longer than the term to maturity of a bond, he or she is exposed to___________ A) interest-ra

te risk. B) reinvestment risk. C) bond-market risk. D) yield-to-maturity risk.
Business
1 answer:
Zigmanuir [339]2 years ago
7 0

Answer:              

option B

Explanation:

Reinvestment risk refers to the possibility that potential cash flow will have to be invested in low-yielding assets, like coupons (the annual interest charges on the bond) or the eventual returns of the investment.

Reinvestment risk refers to one of financial risk's primary styles. The term is used to describe the threat of anyone canceling or stopping a particular investment, which one might need to find another place to reinvest the cash with the risk of not getting an equally attractive prospect.

Thus, from the above we can conclude that correct option is B .            

You might be interested in
Applicants describe how they handled specific problems and situations in previous jobs in a(n) ________ interview.
Serggg [28]
<span>Applicants describe how they handled specific problems and situations in previous jobs in a(n) behavioral structured interview.</span>
7 0
3 years ago
Chuck offers $240,000 for a house. The seller turns down the offer but says she will sell the house for $260,000. However, Chuck
qaws [65]

Answer:

Chuck must be less than $260,000

Explanation:

The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.

6 0
3 years ago
Income statement data for Huffman Pharmaceuticals are provided below. Income Statements 12/31/201712/31/2016 Sales Revenue$598,0
koban [17]

Answer:

Huffman Pharmaceuticals

The percentage that should be assigned to Gross Profit, using trend analysis, is:

= 42%.

Explanation:

a) Data and Calculations:

Income Statements           12/31/2017         12/31/2016

Sales Revenue                  $598,000          $724,000

Cost of Goods Sold             337,000            427,000

Gross Profit                          261,000            297,000

Operating Expenses            137,000             146,000

Operating Income               124,000              151,000

Other Income (Expense)      60,000              23,000

Income before Tax              184,000             174,000

Income Tax Expense             71,000              76,000

Net Income                         $113,000           $98,000

Income Statements           12/31/2017         12/31/2016

Sales Revenue                  $598,000          $724,000

Cost of Goods Sold             337,000            427,000

Gross Profit                          261,000            297,000

Ratio of Gross profit to

 Sales Revenue

2017 = $261,000/$598,000 * 100 = 43.65% =  44%

2016 = $297,000/$724,000 * 100 = 41%

Average Gross profit ratio for the two years = 42.5% (44 + 41)/2.

b) Huffman's trend analysis is the use of its past financial performance indices to predict its future financial performances.  Past performances are expressed in percentages, forming the basis for predicting and comparing future performances of an entity.

6 0
2 years ago
When a US company purchases and imports wood from Brazil to use to build new houses, within the United States, this purchase inc
Mariana [72]

Answer:

The correct answer is 2. No overall change.

Explanation:

The aggregate demand is the total goods and services demanded by a country, at a certain price level, in a certain period of time.

The aggregate demand that can be accounted for measures exactly the same as GDP. So they are often used as synonyms.

To calculate aggregate demand, the same methods as for calculating GDP can be used, however, aggregate demand is associated with expenditure, so it is calculated by the product method, that is, from the point of view of what society has spent. This calculation takes into account the expenditure of families (private individuals), what has been spent on investment, the cost of public administrations, and finally, net exports, which is the difference between imports and exports In this way, the Aggregate Demand formula would look like this:

DA = C + I + G + (X-M)

3 0
3 years ago
To increase living standards, public policy should a. ensure a greater degree of equality, taking all income-earners into accoun
padilas [110]

Answer:

c. ensure that workers are well educated and have the necessary tools and technology.

Explanation:

Living of standard is the living style of the people . It totally depends upon the necessary amount of money available with a person to meet out not only its basic needs but also have sufficient amount of money to meet out their luxurious needs as well.

Public policy is a policy made by the government to bring its decisions into actions with the help of public.

In order to increase the living standard , public policy should make sure that the workers working under the policy for the government are educated enough and they have proper knowledge about operating the necessary tools , equipments and technology .

5 0
2 years ago
Other questions:
  • In the current year, a taxpayer reports the following items: Salary $50,000 Income from partnership A, in which the taxpayer mat
    12·2 answers
  • In the context of Frederick W. Taylor's four principles of scientific management, what is a difference between the first princip
    8·1 answer
  • URGENT!! Describe the attractions of growth stocks and value stocks.
    5·2 answers
  • erest rate parity holds. The U.S. interest rate is 13 percent and the British interest rate is 10 percent. The forward rate on B
    11·1 answer
  • What questions might you ask yourself when developing your personal brand? Check all that apply. What am I not good at? What mak
    10·1 answer
  • Pardee Company makes 30% of its sales for cash and 70% on account. 60% of the account sales are collected in the month of sale,
    9·1 answer
  • A corporation declares $25 million in net income, $1 million in preferred stock dividends, and $7 million in common stock divide
    8·1 answer
  • Which characteristic is most important in identifying which data to collect for marketing research?
    10·1 answer
  • What is Best Buy's business policy framework?
    8·1 answer
  • Exercise Answer the following questions 1. What is teaching? Write.​
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!