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Leto [7]
2 years ago
14

Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises

to pay a specified interest rate and principal at a future date.
The entity that promises to make the interest and maturity payments for a bond issue is called the:________.
Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities.
1. What type of bonds are these?
a. Government bonds
b. Municipal bonds
c. Corporate bonds
2. Who is the issuer of the bonds?
a. BNP Paribas
b. Walmart
c. Mitsubishi UFJ Securities
3. Which of the following statements is true about bonds?
a. When interest rates increase, the prices of U.S. Treasuries decline.
b. When interest rates increase, the prices of U.S. Treasuries increase.
4. Which of the following types of bonds has the least default risk?
a. Municipal bonds
b. Corporate bonds
c. Treasury bonds
Business
1 answer:
DanielleElmas [232]2 years ago
7 0

Answer:

a. Issuer

The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.

1. c. Corporate bonds

When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.

2. b. Walmart

Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.

3. a. When interest rates increase, the prices of U.S. Treasuries decline.

Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.

4. c. Treasury bonds

US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.

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in what way are monetary and fiscal policies similar? group of answer choices they both target aggregate demand to overcome busi
Arisa [49]

Monetary and fiscal policies are similar as  they both target aggregate demand to overcome business fluctuations.

Option A is correct.

<h3>How do monetary and fiscal policies work together?</h3>

Fiscal policy affects aggregate demand through changes in government spending and taxation. These factors affect employment and household income, which in turn affect private consumption and investment. Monetary policy affects the amount of money in the economy that affects interest rates and inflation.

<h3>Is fiscal policy the same as monetary policy?</h3>

Fiscal policy is a policy enacted by the legislative branch of government. It deals with taxation and government spending. Monetary policy is enacted by the government's central bank. Address changes in a country's money supply by adjusting interest rates, reserves, and open market operations.

Learn more about Monetary policy:

brainly.com/question/2417605

#SPJ4

4 0
1 year ago
In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire wor
9966 [12]

Answer:

(B) the macroeconomy

Explanation:

The condition of the macroeconomy would exert the most influence of a firm's decision to hire more workers. As economic growth increases and demand grows, the firm is likely to hire more workers to meet increasing demand for its goods. On the other hand, in an economic recession, the firm is likely to hire less and even lay off its existing workers as demand for its goods reduces.

Option A is incorrect as a firm would not hire more workers even at low wage levels if the economy is in a recession. Option C is incorrect as the level of a firm's income would likely not be considered in its hiring decision if demand for its goods was very high. Option D is incorrect as the household income would likely not be considered by the firm in its hiring decision.

8 0
3 years ago
RealTurf is considering purchasing an automatic sprinkler system for its sod farm by borrowing the entire $50,000 purchase price
Jet001 [13]

Answer:

savings per year = $20,500 - $10,500 = $10,000

the loan and interest are not included in the calculation

initial outlay = $50,000

cash flows 1-8 = $10,000

cash flow 9 = $15,000

discount rate = 15%

using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%

8 0
3 years ago
William and Charlotte Collins divorced in November of year 1. William moved out and Charlotte remained in their house with their
anzhelika [568]

Answer: B. Charlotte

Explanation:

Preference is given to people that live with the dependent so this puts William at the least priority because he doesn't live with Autumn thereby leaving Charlotte and her mother.

Preference is then given to the biological parents of the dependent which means that Diana is has second priority. Charlotte is therefore the the most preferred to claim her daughter as a dependent which would allow her greater tax deductions.

5 0
2 years ago
Red Co. acquired 100% of Green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fa
pav-90 [236]

Answer:

D) $15,000.

Explanation:

190,000 excess of value Building  amortized over 10 years:   19,000

 70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

and we will amortize the equipment at 14,000 per year

the inventory as still is in the company's possesion will also need to be adjsuted

10,000 + 19,000 - 14,000 = 15,000

6 0
3 years ago
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