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murzikaleks [220]
3 years ago
5

A common reason for redeeming a bond prior to its maturity date is ______.

Business
1 answer:
Veseljchak [2.6K]3 years ago
4 0

Answer:

Correct option is (c)

Explanation:

Market interest rate and price of the bond are inversely related.if market interest rate falls and is lesser than stated interest rate (coupon rate), then the bond becomes attractive and its price increases. So, bond can be solved at present higher than the maturity value. This is the reason bond is redeemed before maturity.

On the other hand, if market rate increases, bond becomes less attractive as investors can earn more by investing at market interest rate. So price of bond falls and there is no point redeeming it before maturity.

You might be interested in
The main reason the New York Federal Reserve Bank President is always on the FOMC is _________.
krek1111 [17]

Answer:

The main reason the New York Federal Reserve Bank President is always on the FOMC is due to the importance of the New York Federal Reserve Bank

Explanation:

The body of the Federal Reserve System responsible for making monetary policy is the Federal Open Market Committee, FOMC

The Fed's monetary policy are executed primarily through the New York Fed and the other Federal Reserve Banks. The New York Fed does this mainly through Permanent Open Market Operations, providing lending facilities, and performing quantitative easing so as to ensure that the Fed unemployment, inflation, and interest rates policy targets are archived

The New York Fed is the primary agent through which the Fed intervenes in foreign exchange markets. The New York Fed also carries out all Fed open market transactions, and therefore is about the most important bank in the FOMC

The New York Federal is also the only one of the Federal Reserve banks that is a member of the Bank of International Settlement, provide gold storage for other foreign central banks and a good number of the largest banks in the United States are located in the New York Federal Reserve district, as

The main reason the New York Federal Reserve Bank President is always on the FOMC is therefore due to its uniqueness and the special responsibilities, functions and capacities of the New York Federal Reserve Bank

5 0
3 years ago
A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product f
Kryger [21]

Answer:

The correct answer is option E.

Explanation:

A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

There are no close substitutes for the product and there is only one seller in the monopoly.

The firm may earn profit or loss or profits in the short run based on its revenue and cost conditions.

So, all the options given are correct.

7 0
3 years ago
Read the scenario. Alfonso is 19 years old and has a high school diploma. Recently, he was promoted to assistant manager at the
erik [133]

Answer:

He should attend classes at the local college to receive training in management.

Explanation:

Best option.

6 0
4 years ago
Hester's manufacturing software company is doing better than it ever has and just a year ago it was floundering. Prior to a year
nydimaria [60]

Permanent team structure was Hester now a part of under the new ownership.

Explanation:

Team structure relates to the makeup of a single team or a multi-team program. The organisation of teams is an important component of teamwork. The successful collaboration, teamwork, behavioural management and collective aid are the product of a correctly organised patient care team.

Permanent teams are workplace units structured like a formal organisation. The team brings together staff from all fields of work, such as the components supply and logistics for an automotive plant, concentrated on a particular task or project.

3 0
4 years ago
Tell whether the statement is TRUE or FALSE. Deregulation always leads to lower prices for the consumer.
SVEN [57.7K]
FALSE. Deregulation allows vendors or sellers to set individual prices with no regulation, therefore more likely to set higher rates.
5 0
3 years ago
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