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Katen [24]
3 years ago
8

Firms A and B both issued 20-year bonds on the same date that have identical features except for the coupon rates. However, Firm

A bonds have a coupon rate of 5% and Firm B bonds have a coupon rate of 7%. This difference is due to:
Business
1 answer:
Wewaii [24]3 years ago
6 0

Answer:

Firm B having a higher probability of default.

Explanation:

The probability of default is an approximation of how prospective it looks that the mortgagor will not be able to safeguard the reimbursement responsibilities on the obligation or the finance. And if that mortgagor can be painstaking to keep up with a high likelihood of avoidance, and then the moneylenders can likely charge quite higher interest charges.

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Glinda goes to the supermarket for her monthly grocery shopping. As she waits in the line at the cash register, she sees her fav
ycow [4]

Answer:

<em><u>Convenience products.</u></em>

Explanation:

Convenience products are those goods or services that are purchased by the consumer with high frequency without comparison criteria or high purchasing efforts. These products are widely distributed so that the consumer has the availability of purchase at any time. Examples include magazines, fast food, detergents and beverages.

Some of its features are:

  • Low price,
  • Classified as non-durable goods,
  • High frequency of replacement at points of sale,
  • Easy replacement products
7 0
3 years ago
Use the following to answer the questions.
-BARSIC- [3]

Answer:

B. just-in-time

Explanation:

Just in time (JIT) is an inventory management approach that is used by companies that want to reduce their inventory costs and they purchase their materials in smaller quantities whenever their productive system needs them. The goal is to keep the lowest possible inventory levels.

3 0
3 years ago
The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1 year zero coupon bond is 3%. What does the no-arbitrage condition
tresset_1 [31]

Answer:

<em>$111.11 or 111.11% of face value</em>

Explanation:

Assuming the face value of $100 for all bonds (without loss of generality)

If the two year coupon bond is repackaged as a one year zero coupon bond paying $12 after one year and another two year bond paying $112 after 2 years, the price of the two zero coupon bonds are given as

Price of one year Zero coupon bond = 12/1.05 = $11.43 (one year ZCB has YTM of 5%)

Price of two year Zero coupon bond = 112/1.06^2 = $99.68 (two year ZCB has YTM of 6%)

So, one can sell the repackaged bonds at a price = $11.43+ $99.68 = $111.11 or 111.11% of face value

7 0
2 years ago
John's monthly paycheck consists of $4000 plus a 9% commission on all of his sales. during one month, john earned $11,650. what
Slav-nsk [51]
The first thing you should do for this case is write an equation that allows you to find John's sales during the month.
 Let
 x = amount of money in sales.
 The equation is:
 4000 + 0.09x = 11650
 Clearing x we have:
 0.09x = 11650-4000
 x = (11650-4000) / (0.09)
 x = $ 85,000
 answer:
 his sales during that month were
 $ 85,000
5 0
3 years ago
Government insurance that provides medical care and income to employees
stiv31 [10]

Answer:

Workmen Compensation

Explanation:

The insurance of government which provides the medical care aid and the income to the employees who get injured at the job is the workers compensation insurance covers .

It is that cost of rehabilitation and medical care for employees  injured at the place of job. It also compensates the employees for lost wages and give death benefits for their dependents.

6 0
3 years ago
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