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Vladimir79 [104]
3 years ago
14

A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value?

Business
1 answer:
CaHeK987 [17]3 years ago
7 0

Answer:

The current yield = 9%

The yield to maturity = 10%

The price of the bond will be below the par value and called as discount bonds. This is because the bond and yield to maturity holds the inverse relationship. Therefore, the bond will be issued at discount, below the par value because yield to maturity is greater than current yield.

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If the Federal Reserve lowers the target federal funds rate, Group of answer choices the discount rate rises liquidity in the ba
navik [9.2K]

Answer: Liquidity in the banking system is increased

Explanation:

The Federal Funds rate is the interest rate at which commercial banks are allowed to lend each other their excess reserves overnight to meet reserve requirements.

If this rate were to be reduced, it would make lending cheaper between banks who would then take advantage of this to borrow more occasionally. This will then translate to a higher liquidity amongst the banks.

3 0
3 years ago
Which of the following is required to be present in an Employment Verification Letter?
Furkat [3]

Answer:

name, title, salary, and dates of employment. 

Explanation:

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5 0
3 years ago
What is the effect on market when suppliers under invest in their businesses​
yanalaym [24]

Answer:

  • Low supply
  • Scarcity
  • Low economic growth

Explanation:

When suppliers under invest in their business, they will end up having the capacity to only produce less than the market requires. Should this happen, supply will be reduced in the market which would lead to relative scarcity all else being equal.

For economic growth to happen, there must be increasing production in an economy so if suppliers are under investing and production is low, there might be low or no economic growth.

8 0
3 years ago
Organic Eats provides an organic, vegan menu. Since there are very few restaurants that offer the same unique services, customer
Sphinxa [80]

Answer:

Focused differentiation strategy

Explanation:

A focused differentiation strategy is used by organizations that concentrate on having products that have a unique feature that fulfills the needs of a specific target market that is willing to pay more for these products. According to this, the answer is that in this scenario, Organic Eats is following a focused differentiation strategy.

3 0
3 years ago
In Ben v. City Car Dealership, a state supreme court held that a minor could cancel a contract for the sale of a car. Now a tria
Neporo4naja [7]

Answer:

The correct answer is D

Explanation:

Under the doctrine of the stare decisis, the court will look into the past or the similar issues in order to guide their decisions related to the issues. And the past decisions are referred or acknowledged as the precedent.

Precedent is the principle or rule which is legal and it is established or created by the decision of the court. And this decision become the authority or the example for judging or deciding the similar issues.

Therefore, in this case, the trial court when deciding upon the case of D v E, will likely to allow or permit the minor to cancel the contract or the agreement.

7 0
3 years ago
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