Answer: D. The risk premium on long-term corporate bonds has exceeded the risk premium on long-term government bonds.
Explanation:
It has been shown that between 1926 and 2015, the risk premium attached to long term corporate bonds is more than those of comparable government bonds and this is supported by financial theory.
Government bonds are traditionally meant to be possess less risk because they are backed by the full faith of the government. They will therefore posses a lower risk premium (risk premium is the extra amount paid on a bond to compensate for risk) than corporate bonds because they have less risk than corporate bonds.
Answer:
He will have $102,979 in his retirement account in 10 years.
Explanation:
Annual Payment = $2,000
Number of Year = n = 10
Interest rate = i = 5%
Compounded Quarterly
Future value after 10 years
FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )
FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )
Future value = $102,979
So, Ira Schwab will have $102,979 in his retirement account in 10 years.
Answer:
$2,744
Explanation:
The computation of the interest amount is shown below:
= Face value of promissory note × rate of interest × number of days ÷ total number of days in a year
= $75,000 × 15% × 90 days ÷ 365 days
= $2,744
By multiplying the face value with the rate of interest and the number of days we can find out the interest expense and the same is shown above
Answer:
E. focusing on local markets whose circumstances will be most challenging to the company's business model
Answer:
C. Does not provide any indication regarding a project's liquidity or risk.
