Answer: c. If their maturities and other characteristics were the same, a 5% coupon bond would have more price risk than a 10% coupon bond.
Explanation:
Price risk of a bond is the risk that the bond changes price or rather the degree of price volatility. Bond prices change in reaction to market interest rates with higher rates meaning lower prices and lower rates meaning higher prices.
When the market interest rates rise above the Coupon on a bond, the bond price will fall below par and when the interest rates are below the coupon, the bond will be above par.
A 5% coupon bond will be more prone to changes in prices because market interest rates are generally low and fluctuate below 10% which means that they will affect the 5% bond more than the 10% because there are better chances of rates rising above or falling below 5% than there are of 10%.
Answer:
Falls by $100,000
Explanation:
In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.
Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000
We now calculate the price or worth of the land when demand falls
This is mathematically equal to 400 * 1000 = $400,000
Now, the net economic rent fall would be $500,00 - $400,000 = $100,000
Hence, there would be a fall of $100,000 as the demand for land falls
Answer:
C. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate.
Explanation:
Portfolio diversification gives more security to a portfolio, which expected to results in a decreasing rate of total risk.
The portfolio which is diversified carries the co-variance measure of risk. It has the property of reducing the risk as it diversifies the portfolio to a great extent.
It reduces the overall risk by diversifying the assets i.e. stock , bonds, commodities etc.
Hence, the most appropriate answer is option C.
How does inclusivity practised inclusivity in a private company.
Es la C tienes mas riesgos por que aquí tu tienes tu propia empresa y por lo tanto mas dinero lo cual atrae a lis delincuentes para hacer secuestros robos asesinatos etc
Espero q te sirva
