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Darina [25.2K]
3 years ago
7

A(n) ________ in the liquidity of corporate bonds will​ ________ the price of corporate bonds and​ ________ the yield on corpora

te​ bonds, all else equal.
Business
1 answer:
Fed [463]3 years ago
3 0

Answer:

An <u>increase</u> in the liquidity of corporate bonds will <u>increase</u> the price of corporate bonds and <u>decrease</u> the yield on corporate bonds, all else equal.

Explanation:

Bond liquidity refers to how quickly the bonds can be redeemed and converted to cash. This relates to the ease with which an investor can sell his bond.

High liquidity bonds are costly as they are more in demand and an attractive investment for the investors.

Thus, bond liquidity is directly related to it's price.

The yield of a bond refers to the market rate of return and represents the expectation of the bondholder with respect to rate of return.

A high price bond ( high liquidity) usually pays higher coupon rate of interest which is higher than the market rate of return on similar bonds i.e yield to maturity. This means price of a bond is inversely related to it's yield. Higher the bond price, higher the coupon payment, lower the bond yield.

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Mike is saving his emergency funds in an IRA account. Is his strategy a good one? Select the best answer from the choices provid
alexandr402 [8]

The answer to your question is:

- A. Yes, because IRAs have tax advantages over regular bank accounts.

4 0
2 years ago
Tutak Industries issued a $1,000 face value bond a number of years ago that will mature in eight years. Similar bonds are yieldi
s2008m [1.1K]

Answer: The coupon rate is 13%

Explanation:

We would first calculate the Coupon Payment and then later using the coupon payment we would compute the Coupon rate.

PV = \frac{FV}{(1+r)^{N} } + A [[\frac{1-\frac{1}{(1+r)^{N} } }{r} ]]

Where,

FV = $1,000

PV = $1,291.31

r = 8%

N = 8 Years

A = Coupon Payment

1291.31 = \frac{1000}{(1+0.08)^{8} } + A [\frac{1-\frac{1}{(1+0.08)^{8} } }{0.08} ]

Solve for A

A = 130.69

The coupon payment is $130

Coupon rate = (Coupon payment / Face value) x 100

                     = \frac{130}{1000} x 100

                     = 13 %

7 0
2 years ago
Why long hair on men fell out after the medieval times?
fiasKO [112]
That depends from culture to culture. Some associated it with wildlings or with "uncivilized" Arabian cultures from Northern Africa, while others found it impractical as they were in the military or were in a religious order. Buddhist monks for example shave their heads completely due to their beliefs, while others cut of their hair for army reasons.
3 0
3 years ago
When the company assigns factory labor costs to jobs, the direct labor cost is debited to Factory Labor. Manufacturing Overhead.
icang [17]

Answer: work in process inventory

Explanation:

The direct labor costs refers to the costs that is incurred by a company which has to do with the payment to the employees involved in the production activities of the company.

When a company assigns factory labor costs to jobs, then the direct labor cost is debited to the work in process inventory.

8 0
3 years ago
On June 1, Year 1, Yola Corp. lent Dale $500,000 on a 12% note, payable in five annual installments of $100,000 beginning Januar
sweet [91]

Answer:

C) $10,000

Explanation:

The last interest payment was made on November 1, so by December 31, two months worth of interest is considered receivable.

Interest receivable = principal x interest rate x time periods = $500,000 x 12% x (2/12) = $10,000

By December 31, no principal payments had been done yet.

8 0
2 years ago
Read 2 more answers
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