1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Is there any way for a monopoly to operate more efficiently than a competitive market? why or how?.
irga5000 [103]

The equilibrium point in a competitive market exists at the point of optimal market efficiency.

<h3>What is competitive market?</h3>

A competitive market exists a term in economics that guides to a marketplace where there exist a large number of buyers and sellers and no single buyer or seller can influence the market. Competitive markets have no obstacles to entry, lots of buyers and sellers, and homogeneous products.

In economics, especially general equilibrium theory,  A perfect market also understood as an atomistic market, is determined  by several idealizing requirements, collectively anointed perfect competition or atomistic competition.

No, the monopoly can never be additional efficient than the perfectly competitive market because the competitive market exists at the point of optimal market efficiency and the monopoly will deliver at the point where the MR and the MC stand equal. here the market has the excess capability and a dead weight loss.

To learn more about competitive market refer to:

brainly.com/question/8753703

#SPJ4

7 0
2 years ago
Carly donated inventory (ordinary income property) to a church. She purchased the inventory last month for $100,000, and on the
MissTica

Answer:

$92,00

Explanation:

Base on the scenario been described in the question which we saw how Carly donated an to the church, when she purchased the gift, it was $100,000 but when she is to present the gift to the church, the fair market value became $92,000 which is her maximum charitable contribution deduction

the charitable deduction for ordinary income property is the lesser of fmv or basis limited to 50% of AGI

8 0
3 years ago
Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.
never [62]

Answer:

the rate of return that expected on one year treasury security is 9.00%

Explanation:

The computation of the rate of return that expected on one year treasury security is as followS

= Risk free rate + average expected future inflation rate + maturity risk premium

= 3.00% + 5.90% + 0.10%

= 9.00%

Hence, the rate of return that expected on one year treasury security is 9.00%

Therefore the correct option is d.

And, the rest of the options are wrong

5 0
3 years ago
The unemployment rate is usually calculated as the number of unemployed individuals A)divided by the total number of people in a
DENIUS [597]
C.

The formula for unemployment rate is: Unemployment Rate = Number of Unemployed Persons / Labor Force. The labor force is the sum of unemployed and employed persons. By dividing the number of individuals whom are unemployed by labor force, you'll find the labor force participation, or unemployment rate
7 0
3 years ago
Read 2 more answers
A channel of distribution: A. is any series of firms or individuals who participate in the flow of goods and services from produ
Illusion [34]

Answer:

A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

Explanation:

6 0
3 years ago
Other questions:
  • Beta Corp., a gaming software company, had recently launched a new game. The target audience identified by the company was the a
    13·1 answer
  • Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model plane
    9·1 answer
  • What kind of tectonic boundary is currently responsible for creating the himalayas?
    15·1 answer
  • Match each type of bond with its description. a. Secured Secured drop zone empty. b. Callable bonds Callable bonds drop zone emp
    9·1 answer
  • Who determines whether a corporation will pay dividends to stockholders?
    6·1 answer
  • You paid $10,000 for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum
    6·1 answer
  • What is a trailing stop loss
    11·2 answers
  • Mark is facing a crucial deadline. The work is more than he can handle in the amount of time, but he has not told his manager. H
    7·1 answer
  • Do you think the price elasticity of demand for Ford sport-utility vehicles (SUVs) will increase, decrease or remain the
    5·1 answer
  • Should you include personal date on a resume ? explain your answer?​
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!