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tatyana61 [14]
3 years ago
8

Let’s say you own a firm that produces and sells Ping-Pong tables. The name of your company is iPong because your tables have a

plug-in jack for all Apple products. To finance a new factory, you decide to sell bonds. Your bonds are rated BBB. How will demand be affected if a ratings agency upgrades your bond rating to AA?
Business
1 answer:
Afina-wow [57]3 years ago
4 0

Answer:

Increase

Explanation:

Bonds refer to medium of raising long term finance whereby the issuer agrees to pay periodic coupon payments and principal repayment upon maturity to the lenders.

Bond ratings convey the credit risk a bond carries. For instance, AAA rating is considered to be the best rating followed by AA, etc. Such ratings depict the credit worthiness of the bond issuer.

Higher or better the credit rating, more popular the bonds would be, lesser would be the investment risk and thus more would be their demand.

In the given case, the bonds which were initially rated BBB have been upgraded to AA. This would result into an increase in the demand for such bonds.

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A customer has made an investment that pays $20 of interest during its first year and that has appreciated by $250, for a year-e
love history [14]

Answer:

0.2571 or 25.71%

Explanation:

In this case, even though the initial amount invested is not given, it can be found by subtracting the amount by which the investment appreciated of the year-end value:

A = \$1,300 - \$250\\A = \$1,050

The return rate is given by the interest payed added to the amount appreciated, divided by the initial investment:

r=\frac{\$250+\$20}{\$1,050} \\r=0.2571= 25.71\%

The customer's total return is 0.2571 or 25.71%

6 0
3 years ago
Which form of currency is not backed by gold today? The form of currency no longer backed by gold is called money
Amiraneli [1.4K]
<span>
The form of currency that is no longer backed by gold is called money. The currency is not backed by gold because in 1971 people have became able to utilize </span><span>banknotes</span><span> as the only form of money. So, the money had no currency with any gold or silver backing and that is the reason why it is not backed.
</span>
3 0
3 years ago
Since the 1970s, the largest area of job growth in the United States has been in the ______ sector; areas such as banking, healt
JulsSmile [24]

The largest area of job growth in the United States has been in the service sector.

<h3>What are the service sectors?</h3>

The service sector is commonly known as the tertiary sector. It is also known to be the third tier in the three-sector economy.

An Examples of service sector jobs are housekeeping, nursing, etc. The Service industries is made up of:

  • Banking
  • Communications
  • Wholesale and retail trade, etc.

Conclusively, The largest area of job growth in the United States as at 1970s has been in the service sector.

Learn more about service sector from

brainly.com/question/26521390

3 0
2 years ago
Blazer Sports Store is preparing to pay its quarterly dividend of $7.75 a share this quarter. The stock closed at $105.64 a shar
Lana71 [14]

Answer:

$99.3625

Explanation:

The computation of ex-dividend stock price is shown below:-

Ex-dividend stock price = Stock closing price - Stock dividend × (1 - tax rate)

= $105.64 - $7.75 × (1 - 19%)

= $105.64 - $7.75 × 0.81

= $105.64 - 6.2775

= $99.3625

Therefore for computing the ex-dividend stock price we simply applied the above formula.

3 0
3 years ago
What is the danger of having a lot of debt?<br> (brainlyest)
ArbitrLikvidat [17]

Answer:

probably not paying it off in time or something

Explanation:

4 0
3 years ago
Read 2 more answers
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