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vitfil [10]
3 years ago
6

Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon

bond will change more than the price of the higher coupon bond." (True, false, or maybe?) Explain your answer.
Business
1 answer:
AfilCa [17]3 years ago
8 0

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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Mariulka [41]

Answer:

individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.

Explanation:

A public good is a good that is non excludable and non rivalrous. Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue

The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.

Because a public good is non-excludable, the problem of free rider increases so private firms would be unable to generate adequate revenue

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sveta [45]

Answer:

C

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2 years ago
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keep your money hidden from family, typically the cousins, they like to steal it :')

6 0
3 years ago
Barton, Inc. is a corporation with ordinary net business income of $130,000, dividends of $2,000, a long-term capital gain of $5
Levart [38]
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Based on my these figures, Barton’s taxable income is $127,000.
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