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klasskru [66]
3 years ago
9

Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of which are noncallable, are as

follows: T-bond = 7.72% A = 9.64% AAA = 8.72% BBB = 10.18% The differences in rates among these issues were most probably caused primarily by:
Business
1 answer:
Elina [12.6K]3 years ago
3 0

Answer:

The question is missing the options which are below:

A Real risk-free rate differences.  

B Tax effects.  

C Default risk differences.  

D Maturity risk differences.  

E Inflation differences.  

The correct answer is option C,default risk differences.

Explanation:

Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.

Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:

Balance sheet position

Profitability

Liquidity strength of the company

Macro-economic factors and some others.

Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest  when due.

Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.

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A company is hiring professionals for web designing. The firm is small with few resources. They want employees who possess probl
Tatiana [17]

Answer:

Those who possess required skills.

Explanation:

Considering the firm's size and having a few resources, the firm should select employees who possess the following 3 important skills:

1. Honesty, and a Strong Work Ethics; this employees can be trusted with tasks, and may possess high moral standards beneficial for success.

2. Intelligence

they should be teachable and this may be proven by the use of an IQ or personality test.

Their professionalism is well reflected by their ability to introduce new technologies in web design.

3. Leadership Skills

This employees are vital for the long-term growth of the firm.

They could effectively lead teams, train new team members and boost the firm's workplace productivity.

5 0
3 years ago
When does information become a liability for an organization?
jeyben [28]
A liability is a debt to an oraganization/business. Once the information brings the company down -holds them back- it becomes a liability. It's like if you have an accounts payable your creditors would have full rights to your money upon company liquidation. That means your company will earn less revenue. A liability is something you owe.
7 0
3 years ago
onghorn Fabricators Inc. plans to expand its metals-forming facility over the next 5 years. The company will add 20,000 square f
Ann [662]

Answer:

Future value of total improvement cost = $1,788,552.44

Explanation:

As per the data given in the question,

Regular deposit amount = $250,000

No. of period = 5 years

Interest rate = 18%

Future value = Regular deposit amount × [((1+interest rate per period)^no. of period - 1) ÷ interest rate per period]

Face value = $250,000×[((1+0.18)^5-1) ÷ 0.18]

= $250,000×7.154

= $1,788,552.44

Future value of total improvement cost = $1,788,552.44

7 0
3 years ago
What is a “work point”?
Alja [10]

Answer:

A work point is an independent entity whose location is defined in space.

Explanation:

Work points may be placed or projected onto part faces, linear edges, or onto an arc or circle. Work points can be constrained to the center points of arcs, circles, and ellipses.

4 0
3 years ago
A company reports the following:
fredd [130]

Answer:

a. 15 times

b. 24.3 days

Explanation:

The computation is shown below:

a. Accounts receivable turnover

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable  

= $3,150,000 ÷ $210,000

= 15 times

b. Number of days sales in receivables = Total number of days in a year ÷ accounts receivable turnover ratio

= 365 days ÷ 15 times

= 24.3 days

7 0
3 years ago
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