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Lyrx [107]
4 years ago
10

Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year

. They are considered risk-free investments. Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. Issued by corporations, these instruments can have maturities from 1-40 years. The risk depends on the financial strength of the issuing corporation.
Business
2 answers:
Bogdan [553]4 years ago
7 0

Answer: the US treasury bills

Explanation:

A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments.

The Treasury Department sells T-Bills during auctions using a competitive and non-competitive bidding process. Noncompetitive bids—also known as non-competitive tenders—have a price based on the average of all the competitive bids received. T-Bills tend to have a high tangible net worth.

jonny [76]4 years ago
7 0

Answer:

Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments. US TREASURY BILLS  or T-Bills are short term investments that are extremely secure, and lately provide a slightly higher yield than longer securities backed by the US government.  

Issued by corporations, these unsecured debt instruments are used to fund corporate short-term financing requirements. If issued by a financially strong company, they have less risk. COMMERCIAL PAPERS or promissory notes issued by corporations that have a maturity date of less than a year.

These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated. MONEY MARKET MUTUAL FUNDS  have the advantage of requiring low amounts for initial investments. Most of them require less than $2,000 to start investing with them, and some even require smaller amounts. They are considered very safe investments due to high portfolio diversification.

Issued by corporations, these instruments can have maturities from 1-40 years. The risk depends on the financial strength of the issuing corporation. CORPORATE BONDS are basically long term debt notes issued by corporations. They usually provide an annual or semi-annual coupon payment determined by the bond's interest rate. They are safer than stocks because in case something goes wrong with the corporation, bondholders are paid first.

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When savings accumulate beyond what may be needed for short-term goals and emergencies, then you have money available for invest
sasho [114]

Answer: True

Explanation:

 Yes, the given statement is true that the short term goals are refers to the goals that is achieved in short period of time by establishing a proper financial planning and also manage our expenditure for the purpose of investing the various types of goals.

According to the given question, For the purpose of investing we need availability of the money for setting the each goals in prioritized way and also eliminating the credit and debt funds.  

 Therefore, The given statement is true.

7 0
3 years ago
If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if th
Mice21 [21]

Answer:

Equilibrium price and quantity would fall

Explanation:

Substituite goods are goods that can be consumed in place of each other. If the price of a good increases, consumers can easily subsituite to the other good.

If cappuccinos and lattés are subsituites, if the price of cappuccinos falls, the demand for cappuccinos would increase and the demand for lattes would fall because lattes are now relatively more expensive than cappuccinos.

The fall in demand leads to a fall in quantity demanded and price.

I hope my answer helps you.

8 0
3 years ago
Which of the following will require you to pay back any money you recieve
AlexFokin [52]
That's not a question, but the proper answer should be a loan.
6 0
3 years ago
Consider an 8.5% loan amortizing at a 25-year rate with monthly payments. What is the maximum amount that can be loaned on a pro
Leto [7]

Answer:

<u>Maximum Amount that can be loanded = $4139619</u>

Explanation:

DSCR = NOI / Debt Service

Debt Service = Principal + Interest

NOI = $ 500000

Debt Service = 500000 / 125 % = $ 400,000

The loan would be ammortized monthly over a period of 25 years.

Monthly Payment or EMI

E = P×r×(1 + r)n/ ((1 + r)n - 1)

12E = 400,000 = [P×r×(1 + r)n/ ((1 + r)n - 1)] * 12

or, P = 400000 / 0.0966272500154557 = $4139619

<u>Maximum Amount that can be loanded = $4139619</u>

8 0
4 years ago
J &amp; B Corp. is investing in a major capital budgeting project that will require the expenditure of $20 million. The money wi
DaniilM [7]

Answer:

a) WACC = 12.20%

Explanation:

Weighted average cost of capital is computed by allocating weights to different capitals.

Cost of bonds = Cost of debt = 5%

Cost of preferred stock = 9%

Cost of equity = 16%

As it is new issued and not from retained earnings.

With weights cost will be as follows

Bonds = 5% X $5/$20 = 1.25%

Preference share = 9% X $3/$20 = 1.35%

Equity = 16% X $12/$20 = 9.6%

WACC = 1.25 + 1.35 + 9.6 = 12.20%

7 0
4 years ago
Read 2 more answers
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