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Sphinxa [80]
3 years ago
14

The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the dura

tion of the bond and does not fluctuate with market interest rates.
Business
1 answer:
lyudmila [28]3 years ago
3 0

Answer:

TRUE

Explanation:

The coupon rate for a bond is fixed and is paid by the issuer of the bond to the bondholder. The cash outlay/inflow to the issuer/bondholder is always the same reardless of the market rate.

The effect of the market rate is on the cost to acquire the bond in the secondary market. It do not change the coupon obligation.

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Stewart wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed 3
Likurg_2 [28]

Answer:

Stewart will probably have to accept a higher level of risk .

Explanation:

Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.

  • These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.
  • In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.

If he invests his money in higher-risk fields like shares, he may get a higher profit.

3 0
3 years ago
The process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the m
antoniya [11.8K]

Answer:

The correct answer is: Management by Objectives (MBO).

Explanation:

Management by Objectives (<em>MBO</em>) is a process in which a manager an employees agree on specific performance goals and then develop a plan to reach those goals. First outlined in Peter Drucker's 1954 book "<em>The Practice of Management</em>", MBO ensures better employee participation and commitment while aligning objectives throughout an organization.

4 0
4 years ago
Abe and Bea each have some money to invest in a CD (Certificate of Deposit). Abe has $5,000 and Bea has $20,000. Both are intere
hjlf

Answer:

Abe = $17.5

Bae = $57.5

Explanation:

Abe's principle = $5,000

Bea's principle = $ 20,000

Abe individual investment yield at 0.41% = (5010-5000) = $10

Bae's individual investment yield at ) 0.50%= (20000-20050) $50

Combined investment yield at 6 % = (25,075 - (20,000+5000) = $75

Extra interest yield = (75-(50+10) = $15

The extra interest yield of $15 should be shared equally among Abe and Bae as a result of joint effort

= 15/2 - $7.5

Therefore , the $75 interest is shared as below

Abe = $10 (interest on individual principle)+$7.5 = $17.5

Bae = $50 (interest on individual principle)+$7.5 = $57.5

3 0
3 years ago
The type of letter of credit that can be split up between many suppliers, each able to present their own documents for payment a
Nastasia [14]

Letter of credit that can be split up between many suppliers, each able to present their own documents for payment and allowing the trader to take his profits from the balance of the credit, is called Transferable Letter of Credit .

Explanation:

Transferable Letter of Credit is a credit document in which the party can transfer the credit in full or partial to another beneficiary.

A transferable credit letter that enables a receiver to further pass all or part of the payment to another supplier in the chain or to some other receiver. This usually occurs when the recipient is merely a conduit to the actual supplier. Such LC allows the beneficiary to have their records, but to further pass the credit.

5 0
3 years ago
Read 2 more answers
Prior to the iconoclasm of the eighth century, icons were accepted as __________________.
Vlad [161]
Here is the answer: Before the iconoclasm of the eighth century occurred, icons were recognized as INTERMEDIARIES BETWEEN WORSHIPPERS AND THEY REPRESENTED HOLY FIGURES. Iconoclasm involves the belief that these holy figures or monuments should be destroyed based on religious beliefs too.
7 0
3 years ago
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