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REY [17]
3 years ago
6

Why is a bond with a higher interest rate often considered a higher risk investment?

Mathematics
2 answers:
grandymaker [24]3 years ago
8 0
Having a high interest rate doesn't make a bond higher risk. The cause and effect goes in the other direction: if a bond is higher risk, then investors demand a higher return. Consider two investment choices: you could put $100 in a bank and get paid $1 interest, or you could gamble $100 on a game of chance that pays out $101 if you win, or nothing if you lose. Unless you're a gambling addict, you won't take the risk of losing your money when the safe alternative pays just as much. But if the game pays the winner $200, then you might be interested. Likewise, companies that have a higher risk of defaulting need to promise a higher interest rate on their bonds in order to get anyone to choose them over safe investments.
Zinaida [17]3 years ago
4 0

Answer:

D

Step-by-step explanation:

Took quiz

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Multiplying Polynomials//<br><br> Multiply- <br> 12x^4 (-5/6x^3y^2)
ElenaW [278]
12 x^{4} * (- \frac{5}{6} x^{3} y^{2})
Now multiple the coefficients and add the exponents with common bases
12 * - \frac{5}{6} = -10 \\  x^{4} +  x^{3} =  x^{7}
Now write your final expression
-10 x^{7}  y^{3}
Hope I helped!
6 0
3 years ago
Do Now:<br>Is this an exponential<br>function?<br>3x + 10<br>Yes<br>No solve for x equals 0 ​
ZanzabumX [31]

Answer:

Yes

Step-by-step explanation:

4 0
3 years ago
Asa received scores of 72, 97, and 82 on her last three math tests. She needs a mean test score of 82 to qualify for the math te
Flauer [41]

Scores are {72, 97, 82, x} where x is the unknown fourth score

They add up to 72+97+82+x = x+251

Divide this sum over four because there are four scores we want to average out. We end up with (x+251)/4 = M where M is the mean. Asa wants the mean to be 82, so make M = 82.

We can replace M with 82 and solve for x like so

(x+251)/4 = M

(x+251)/4 = 82

x+251 = 4*82

x+251 = 328

x = 328-251

x = 77

Asa needs a score of 77 on the fourth test so that the mean of the four tests is 82. If she scores higher than 77 on the fourth test, then the mean will be larger than 82.

-----------------------------------

Depending on what your teacher is looking for, the first step is to establish your variable. So you would say "let x = fourth score". However, that seems too easy. So perhaps your teacher is looking for the equation (x+251)/4 = 82 or some variant of it.

5 0
3 years ago
Read 2 more answers
What similarity property, if any, can be used to show that the following two triangles are similar.
pychu [463]
My guess is SAS, it’s definitely not a or d
8 0
3 years ago
Allen has 344 baseball cards he gave keyone 25 how many cards does Allen have left?
Ronch [10]
Hey there! Just subtract 25 from 344. The answer is 319.
4 0
3 years ago
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