All categories

3 years ago

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

2 answers:

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:

Step-by-step explanation:

Took quiz

You might be interested in

They're usually 365 days in each year every 4th year is call a leap year and has one extra day in February how many days are the

Mariana [72]

Answer:

Total number of days in 8 years is 2,922 days.

Step-by-step explanation:

Number of days in a Normal year = 365 days

Number of days in a leap year = 366 days

Also, Leap year comes exactly ONE TIME in every FOUR YEARS.

⇒ In every consecutive 4 years, 1 year is a leap year.

⇒ So, number of leap years in 8 years = 2

Now, 8 Years = 6 Normal years + 2 leap Years

<u>Number of days in 6 normal years</u>

= 6 x ( Number of days in a regular year)

= 6 x (365 days) = 2,190 days

<u>Number of days in 2 leap years</u>

= 2 x ( Number of days in a leap year)

= 2 x (366 days) = 732 days

So, Total number of days in 8 years

= Number of days in 6 regular years + Number of days in 2 leap years

= 2,190 days + 732 days

= 2,922 days

Hence, total number of days in 8 years is 2,922 days.

5 0

3 years ago

5 rational and irrational numbers in decimal form

alexira [117]

Answer:

A rational number is a number that can be expressed as a fraction (ratio). This includes whole numbers, square roots that can be solved evenly, negatives, decimals, and repeating decimals that can be solved with a fraction.

$\frac{1}{2}$ ↔ .5
5 ↔ 5.0
$\sqrt{4}$ ↔ 2.0
-13 ↔ -13.0
0.38462... ( $\frac{5}{13}$ )

An irrational number is a number that is NOT rational. It's the complete opposite!

π ↔ 3.14159
.13133133...
$\frac{\sqrt{3} }{2}$ ↔ 0.86603...
- $\sqrt{5}$ ↔ -2.23607...
$\sqrt{5}$ ↔ 2.23607...

Hope this helps!!!

3 0

4 years ago

A circular swimming pool is 21 feet in

Aleksandr [31]

Answer:

G. 66 feet

Step-by-step explanation:

Radius = 21/2 = 10.5

Circumference

2 × 3.14 × 10.5

65.94 feet

6 0

3 years ago

The length of a rectangle is 8 inches more than three times the width. the perimeter is 88 inches. find the length and width.

Sav [38]

We can say L as length and W as the width

L= 3w + 8

The formula for perimeter is 2L + 2W = P. We can substitute L in as "3w+8" to make the equation...

2(3w+8)+2w=88 Now, we can simplify by distributing the 2 to each term
6w+16+2w=88
8w+16=88 Then subtract 16 from each side..
8w=72
w=9

So the width is 9, so we can substitue that into the previous equation, L = 3w+8.

L=3(9)+8
L=27+8
L=35, W=9

5 0

3 years ago

A number subtracted from 16 is -3

rusak2 [61]

Simplify it to 16a hope im right & hope this helps you .

7 0

3 years ago

Read 2 more answers