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borishaifa [10]
3 years ago
14

You are considering three different bonds for your portfolio. Each bond has a 10-year maturity and a yield to maturity of 10%. B

ond X has an 12% annual coupon, Bond Y has a 10% annual coupon, and Bond Z has a 8% annual coupon. Which of the following statements is CORRECT?
a.
Bond X has the greatest reinvestment rate risk.

b.
If market interest rates decline, all of the bonds will have an increase in price, and Bond X will have the largest percentage increase in price.

c.
If market interest rates remain at 10%, Bond Z's price will be 10% higher one year from today.

d.
If market interest rates increase, Bond Z's price will increase, Bond X's price will decline, and Bond Y's price will remain the same.

e.
If the bonds' market interest rates remain at 10%, Bond X's price will be lower one year from now than it is today.
Business
1 answer:
lys-0071 [83]3 years ago
4 0

Answer:

The correct statement from the following options is (E) If the bonds' market interest rate remains at 10%, Bond X's price will be lower one year from now than it is today.

Explanation:

This is because bond X has the highest annual coupon percentage and a yield to maturity of 10%, so if the bonds' market interest remains unchanged, the bond's price one year from now will be lower than it is today.

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3. Earning of profit is regarded as the main objective of business? Explain by giving any 3reasons
netineya [11]
Profit maximization is usually a main aim of most businesses in the private sector.

1) Usually people invest personal savings into starting businesses so that the return (aka profits) can be greater than the investment and they can earn a better living.

2) If profit is earned then the business would have enough money to pay dividends to its investors/shareholders, otherwise it wouldn’t have enough money to give as dividends and it will lose its investors.

3) Profit is required for the business to survive in competitive markets.
3 0
3 years ago
Novak Corp. has 7400 shares of 6%, $50 par value, cumulative preferred stock and 148000 shares of $1 par value common stock outs
wlad13 [49]

Answer:

The dividends received by the preferred stockholders in 2020 are $30400.

Explanation:

The cumulative preferred stock is the form of preferred stock that accumulates or accrues dividends in case the company does not pay or partially pay dividends to preferred stock in a particular year. This means that the dividends are accrued and the company will need to pay these dividends first in the future whenever it declares dividends.

The total dividends per year on preferred stock is,

Preferred Stock dividends = 50 * 0.06 * 7400 = $22200 per year

The preferred stock dividend that was accrued at the end of 2019 after the dividend payment of $14000 is,

Accrued dividends - Preferred stock = 22200 - 14000 = $8200

In 2020 the company will need to pay this accrued dividend along with the dividend for 2020 on preferred stock. Thus, in 2020 the preferred stock holders will receive dividends of,

Preferred stock dividend to be paid in 2020 = 8200  +  22200  = $30400

8 0
3 years ago
Landscapers must be
svetoff [14.1K]

Answer:

B

Explanation:

because they need to deal with all practices that are done by people on environment

8 0
2 years ago
Read 2 more answers
When you purchase shares of a company in the market, who are you buying those shares from?
leva [86]

Answer:

Investor

Explanation:

A stock is a speculation. At the point when you buy an organization's stock, you're buying a little bit of that organization, called an offer. Investors buy stocks in organizations they think will go up in esteem. On the off chance that that occurs, the organization's stock increments in esteem also.

Investor is a person who purchase shares of a company in the market.

3 0
3 years ago
The predetermined overhead rate is calculated Blank______. Multiple choice question. after the period is over before the period
Ainat [17]

before the period begins

What is period progresses?

A Progress Payment may be provided for a period of time called a Progress Period that is both less than and included in the Performance Period. 2.22 "Target Reward" refers to the target award, as decided by the Committee in accordance with Section 3.3, payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or her Base Salary or as a specific monetary amount. 2.23 "Termination of Employment" refers to the end of the employee-employer relationship between an employee and the Company or an Affiliate for any reason, including, but not limited to, terminations due to resignation, discharge, death, disability, or retirement that take place in accordance with the rules that may from time to time be established by the Committee (at its discretion).

Learn more about period progresses with the help of given link:-

brainly.com/question/14759686

#SPJ4

5 0
2 years ago
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