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arsen [322]
2 years ago
9

A(n) bond is a long-term contract under which a borrower agrees to make payments of interest and principal, on specific dates, t

o the holder of bond. There are four main types reflecting who the issuers are: ?-Select-1.Business2.Treasury?corporate, municipal, and foreign. Each type differs with respect to degree of risk and expected return. All have some common characteristics even though they may have different contractual features.
2. The par value of a bond is its stated face value or maturity value, and its coupon interest rate is the stated annual interest rate on the bond. The maturity date is the date on which the par value must be repaid. A call provision gives the issuing corporation the right to redeem the bonds under specified terms prior to their normal maturity date, although not all bonds have this provision. Some bonds have sinking fund call provisions which require the corporation to systematically retire a portion of the bond issue each year. Because sinking fund provisions facilitate their orderly retirement, bonds with these provisions are regarded as being safer so they will have (-Select-1.lower2.equivalent )coupon rates than otherwise similar bonds without these provisions.

3. Longer maturity bonds have high-interest rate risk but low reinvestment rate risk, while higher coupon bonds have a higher level of (-Select-1.reinvestment rate 2.exchange rate)risk and a lower level of (-Select-1.interest rate2.exchange rate) risk. To account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called duration which is the bond's sensitivity to interest rates.
Business
2 answers:
Brums [2.3K]2 years ago
8 0

Answer:

1) Bond

Treasury

Risk

2) Par

Call

Sinking fund

Safer

Lower

Explanation:

Vesna [10]2 years ago
3 0

Answer:

1) treasury, corporate, municpal 2) equivalent 3) reinvestment rate, interest rate

Explanation:

1) there are four main types of bonds: treasury, corporate, municpal and zero-coupon. Foreign bonds my fall into any of these category.

2) Sinking fund provisions require a bond issuer to put aside some money regularly to be paid to bond holder at bond maturity. The insurance provided by sinking funds allows for lower interest rates. Interest expenses reduce. This deosn't mean coupon rate of bonds will change.

3) higher coupon bonds have higher reinvestment risk because a high amount has to be reinvested to get required yeild-to-maturity. They have lower level of interest rate risk. This is because if the market interest rate rises, their coupon rate will not fall as much as that of lower coupon bond

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Saturday afternoon you can either attend a street festival, work and earn $100, or study for your midterm exam. You flip a coin
Alik [6]

Answer:

The opportunity cost of the time spent studying includes: 2) the benefit that could have been received at the street festival

Explanation:

The cost of opportunity is the alternative that you sacrifice when you choose an option.  It represent the <u>benefits that you misses out</u> on when choosing one alternative over another.  

In this case,  the cost of opportunity is the  benefit that could have been received at the street festival,  because that is the option you leave behind.

Earning a high score on your midterm is the product of your decision

5 0
2 years ago
Mr. Smith, a cash-basis, calendar-year taxpayer, owns a duplex. He lives in one unit and rents the other unit to an unrelated in
Angelina_Jolie [31]

Answer:

Mr. Smith’s rental expense for this insurance policy is

A. $30

Explanation:

Premiun 360

N 3

year 120

From July to December 60

 

Duplex insurance e/one 30

5 0
3 years ago
Interest-on-Interest Consider a $1,500 deposit earning 4 percent interest per year for 7 years. How much total interest is earne
valentina_108 [34]

Answer:

<em>Interest earned </em>     =   $420

Explanation:

T<em>he total worth of the investment after the the investment period compounded at certain rate  is called the Future Value.</em>

Future Value= Principal + compounded interest i.e

FV = P × (1+r)^n

r- rate, FV- future value , n- period

FV = ? , P -1,500, r- 4%, n-7 years

FV = 1,500  ×1.04^(7)

FV = 1973.897669

<em>Interest earned (compound intrest) = FV - Principal amount</em>

                         = 1973.897669 - 1,500

                        =  $473.89

Without interest earning interest.

The amount of interest earned will be computed on the principal only

Interest earned = $1,500× 4%× 7

                         = $420

7 0
2 years ago
"Discuss the financial and operational implications for airlines as they try to offer the newest technology services?"
Oksana_A [137]

Answer with Explanation:

The introducing of newest technology would definitely have financial and operational implications. These implications are given as under:

Financial implications

  • Cost Reduction: The operational costs would be reduced by investing in the newest technology which will make the cash flow position better with time.
  • Benefits Lost Risk: It is possible that the investment might not bring value to the company because of any emergent problems, whose mitigation requires incurring of additional costs.
  • Cost Advantage: The lower operational cost can drive higher sales because the company will be charging lower fare prices to its customer thus giving Cost Advantage.
  • Investing in newest technology might not bring value to the company because it is not attracting potential customers but it might pay off later in the form of developed customer loyalty.

Operational implications

  • Implementing a newest technology might improve the operational processes through which the customer go through, which would increase the customer satisfaction.
  • Implementation problems of newest technology.
  • Long term Customer retention will easy for the airline company due increased customer satisfaction.
  • Operational efficiencies related to services will process the customer fastly saving the companies precious time wasted in these process thus reducing the future human resource cost.
  • Using robots might bring adverse marketing because the people might think that the human resource are no more required and risks associated with the acceptance of technology due to cultural differences.
  • Better Security systems would increase the security level and safety levels for the customers.
7 0
2 years ago
The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount
S_A_V [24]

Answer:

low market growth, high relative market share

Explanation:

In 1970, Bruce D. Henderson created a certain growth-share matrix for the Boston Consulting group in which the cash cow was stated to be a company that operates in a slow-growing industry but with large market share.

Companies are known to love cash cows, reason being that they require minimal amount of money to maintain while the business on its own gives back much more money than one puts into it

3 0
3 years ago
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