When a bond's rating is upgraded, the bond is considered a safer investment. This will lower the yield on the bond, because the risk premium is lower. The same principle is at work if you apply for loan. You can think of your credit score as your "bond rating". The better your credit score, the more of a safe bet you are to lend money to, and the more likely you are get a lower interest rate. The same is true of bonds. The yield of a bond is inversely related to the perceived risk of the bond not being repaid.
I think the answer is all of the above
Answer:
the principal amount at a rate of 4% is 2000
principal amount at a rate of 3.5% is 4000-2000 =2000
Explanation:
We have given total amount borrowed = $4000
Let x amount is borrowed at a rate of 4%
So $4000-x is borrowed at rate of 3.5%
Total interest = $150
We know that simple interest
So
0.5 x=1000
x = 2000
So the principal amount at a rate of 4% is 2000
And principal amount at a rate of 3.5% is 4000-2000 =2000
Answer:
TRUE
Explanation:
A golden parachutes is a contract signed between the employees and employers in which an executive is given a lucrative severance benefits when there's a merger or acquisition. In this case, it is very beneficial for the top management if Raven Crest is acquired seeing they have both a golden parachutes contract signed in and also posses significant stock options. Should the control of the RavenCrest change hands through an acquisition, the top management will be handed lucrative severance benefits.
Most likely answer is option 1