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jolli1 [7]
3 years ago
12

Select one of the choices below that best completes the following sentence: If an investor sold long-term bonds and used the pro

ceeds to purchase short-term bonds, this would increase the investor's exposure to ________ risk and decrease the investor's exposure to ________ risk.
Business
1 answer:
nydimaria [60]3 years ago
4 0

Answer:

Reinvestment; Price

Explanation:

Reinvestment risk refers to the possibility that an investor will be unable to reinvest cash flows at a rate comparable to their current rate of return.

Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value.

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Bonita Industries had the following bank reconciliation at March 31, 2020: Balance per bank statement, 3/31/20 $74600 Add: Depos
drek231 [11]

Answer:

$50,400

Explanation:

Cash Balance as per bank statement                        $62,900

[$69700+$25300-$20400+$87600-$99300]

Less: Outstanding checks at April 30, 2020              <u>$12,500</u>

Adjusted Cash balance per bank                               <u>$50,400</u>

So, the cash balance per books at April 30, 2020 is $50,400

5 0
3 years ago
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Allisa [31]
B both women are correct 
6 0
3 years ago
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Cara and jason have a sexual relationship but have agreed that they will not be monogamous. neither wants to have a child right
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The best contraceptive for them to use is condom.
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8 0
3 years ago
Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900.
leonid [27]

Answer:

8.67%

Explanation:

PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40

N (No of coupons paid) = 10*2 = 20

Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%

Future value of reinvested coupons = FV(PMT, N, Rate)

Future value of reinvested coupons = FV(40, 20, 3.5%)

Future value of reinvested coupons = $1,131.19

FV = 1,000

PMT (Semi-annual coupons) = 40

N (No of coupons pending) = 10*2 = 20

Rate (Semi-annual YTM) = 9%/2 = 4.5%

Price of the bond after 10 years = PV(FV, PMT, N, RATE)

Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)

Price of the bond after 10 years = $934.96

Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years

Total amount after 10 years = $1,131.19 + $934.96

Total amount after 10 years = $2,066.15

Amount invested (Price of the bond now) = $900.

Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1

Total Annual Return = [($2,066.15/$900)^(1/10)] -1

Total Annual Return = [2.295722^0.1] - 1

Total Annual Return = 1.08665561792 - 1

Total Annual Return = 0.08665561792

Total Annual Return = 8.67%

7 0
3 years ago
What is a stock index
hichkok12 [17]

Answer:the answer is a market index is a measurement of sections of the stock market

Explanation:

It is computed from the price of selection stock it is a tool used by investors and financial managers to describe the market and to compare the return on specific Investments

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3 years ago
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