1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sleet_krkn [62]
3 years ago
15

There is an inverse relationship between bonds' quality ratings and their required rates of return. Thus, the required return is

lowest for AAA-rated bonds, and required returns increase as the ratings get lower. a. True b. False
Business
1 answer:
vlabodo [156]3 years ago
3 0

Answer:

a. True

Explanation:

Bond rating is a method used to convey the creditworthiness and quality of bonds. The rating system uses letters and AAA rating is considered to be the best rating.

The better the rating of a bond, the safer the investor would be considering the invested funds. The better the rating, more the assurance of bond making timely coupon payments and repayment.

When a bond is not well rated, the investor would be at a risk while investing in such a bond. In such cases, the investor would only invest if he is compensated for this extra risk assumed by higher expected rate of coupon payments i.e YTM( yield to maturity).

Thus, an investor would expect higher required rate of return from a BB rated bond than a AA rated bond.

You might be interested in
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system w
Alona [7]

Answer:

$184.34

Explanation:

The computation of activity rate for the Order Size activity cost pool is shown below:-

The Activity rate for Order size = Estimated order size overhead cost ÷ Total machine hours

= 1,069,190 ÷ 5,800

= $184.34

Therefore for computing the activity rate for the Order Size activity cost pool we simply applied the above formula and ignore all other value.

7 0
3 years ago
MC Qu. 97 The standard materials cost to produce... The standard materials cost to produce 1 unit of Product R is 7 pounds of ma
OleMash [197]

Answer:

total direct materials cost variance is $6,000 Favourable

Explanation:

first we get here Standard cost to manufacture

Standard cost to manufacture 6,000 units is = 7 × $47 × 6,000

Standard cost = $1,974,000

and

now we get here Actual cost to manufacturing

Actual cost to manufacturing 6,000 units is = 41,000 × $48

Actual cost = $1,968,000

and

now we get here Direct material cost variance that is express as

Direct material cost variance = Standard cost - Actual cost         ..........1

put here value

Direct material cost variance = $1,974,000 - $1,968,000

Direct material cost variance = $6,000 Favourable

4 0
3 years ago
Use the drop-down menus to complete the steps for creating a subform.
Maksim231197 [3]

Answer:

Design, Design, Click and Drag, Subform Wizard

Explanation:

Enginuity 2022

7 0
2 years ago
How does a business achieve economies of scale?
vaieri [72.5K]

Answer:

Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. ... The larger the business, the more the cost savings.

7 0
3 years ago
Read 2 more answers
Help pls ❗️❗️this is hard
ollegr [7]
It is the last one, 7 days
5 0
3 years ago
Other questions:
  • After 30 selfless years of service to our company, Renalda Garwacki has chosen to take a little more time for herself. With a ne
    13·1 answer
  • Overall levels of income, employment, and prices are determined by the spending and production decisions of all of the following
    11·1 answer
  • Credit unions are not subject to federal regulations.<br> T/F
    10·2 answers
  • A country has been in existence for only two years. In the first​ year, receipts were​ $1.0 million and outlays were​ $1.5 milli
    13·1 answer
  • A producer of beverages and snack foods wants to market its products to the 14-to-22-year-old demographic, providing incentives
    11·1 answer
  • The Hype Company's currently outstanding bonds have a 10 percent coupon and a 11 percent yield to maturity. Hype believes it cou
    7·1 answer
  • There is a rule of thumb which can be used as an approximation called the Rule of 72 to find interest or period of time, given t
    13·1 answer
  • Which of the following statements is true? a. The word theory means same for both economists and laymen. b. Abstraction forms an
    10·1 answer
  • A pension fund has an average duration of its liabilities equal to 15 years. The fund is looking at 5-year maturity zero-coupon
    14·1 answer
  • Journalizing Sales Transactions Enter the following transactions in a general journal. Use a 6% sales tax rate. May 1 Sold merch
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!