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goblinko [34]
3 years ago
15

One problem with conflicts of interest is that they can reduce the ________ in financial markets, thereby increasing ________. Q

uestion 3 options: A) quality of information; asymmetric information B) quantity of information; financial institutions' profits C) quantity of information; asymmetric information D) quality of information; financial institutions' profits
Business
1 answer:
luda_lava [24]3 years ago
3 0

Answer:

The answer is Quality of information and Asymmetric information

Explanation:

        Information quality is a multi-attribute concept, it is said to define the quality of information are of good quality or of high value then the information is said to have good quality.

        Asymmetric information also regarded as "information failure" occurs in a business environment in which some agent in a trade possesses information while other agents involved in the same trade do not.

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Hagelin Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon
Natasha2012 [34]

Answer:

YTM 7.02%

Explanation:

we will calcualte the YTM of the current bonds to know the market rate.

Issuing the bonds at this rate will put them at par value.

The YTM is the one which mades the future coupon payment and maturity equal to the market price.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

Coupon payment: 1,000 x 8%/2 =  40

time 30 (15 years x 2 payment)

40 \times \frac{1-(1+r)^{-30} }{r} = PV\\

PV coupon

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  1,000.00

time   30.00

\frac{1000}{(1 + r)^{30} } = PV  

PV maturity  355.24

PV coupon +  PV maturity = 1,090

For maths reason the only way to solve for rate is with trial and error

we can, however use excel to do it more quickly than by hand:

we write on A1 cell 0.1

en on B1 cell: =PV(A1,30,40)

on C1 cell= 1,000/power(1+A1;1/30)

on D1 =B1+C1

What we are doing is expressing the formulas on excel

then we use goal seek on D1

w e want it on 1090 cahnging the cell A1 which is the rate

this give us the semiannual rate of :

0.035100422

we multiply by 2 to get the annual rate:

0.070200843

YTM = 7.02%

we need to issue the bond at this rate.

8 0
3 years ago
The _____ adds up the market prices of final goods and services. product approach expenditure approach income approach
Mrac [35]

Answer:

product approach

Explanation:

8 0
3 years ago
A deductible of $500 requires ( select the correct answer )
kenny6666 [7]

Answer:

ɴᴏ ᴘɪᴄ sᴏʀʀʏ :(( ʙʏᴇ :)))

5 0
2 years ago
Read 2 more answers
if there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as​
sukhopar [10]

<u>Answer:</u>

<em>If there is a major problem in a country that leads to the rapid withdrawal of foreign investment, this is known as​ International financial crisis </em>

<em></em>

<u>Explanation:</u>

The financial crisis was mainly brought about by deregulation in the budgetary business. That allowed banks to participate in support investments exchanging with subordinates. Banks, at that point, requested more home loans to help the productive clearance of these subordinates. They made intrigue credits that got moderate to subprime borrowers.

Big banks had the assets to become modern at the utilization of these convoluted subordinates. The money with the most muddled monetary items got the most cash flow.

5 0
3 years ago
Marginal utility is the​ ________ satisfaction gained by consuming​ ________ of a good.
Tamiku [17]

Marginal utility is the extra satisfaction gained from consuming one more unit of a good.

3 0
3 years ago
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