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Evgesh-ka [11]
3 years ago
5

risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon

g maturities than on bonds that will mature in the near future. Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. Which type of risk is more relevant to an investor depends on the investor's investment horizon , which is the period of time an investor plans to hold a particular investment.
Business
1 answer:
Ipatiy [6.2K]3 years ago
3 0

Answer:

<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.

<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.

Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.

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On January 15, Year 5, Rico Co. declared its annual cash dividend on common stock for the year ended January 31, Year 5. The div
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Answer:

January 15, Year 5.

Explanation:

The Rico should decrease retained earnings by the amount of the dividend is declaration date.

The declaration date refers to date the board of directors of a company makes a formal announcement of when the next dividend will be paid. The declaration is therefore also referred to as the announcement date.

On the declaration date, liability account known as dividend payable account is created and credited, while the retained earnings is debited or reduced by the amount of the dividend.

From the question, January 15, Year 5 is the announcement date and it is therefore the date Rico should decrease retained earnings by the amount of the dividend.

3 0
3 years ago
Which of the following is a period during which aggregate output, as measured by real GDP, declines
Klio2033 [76]

Answer:

D. Recession

Explanation:

Aggregate output in an economy declines during a recession. This is because economic activities are declining. When such occurs GDP declines. This is different from stagflation in the sense that during a recession, only real GDP declines. However, in a stagflation, the fall in GDP also results to the increase in inflation. During recessions, economic activities are low so is price level.

4 0
1 year ago
Which of the following is an incorrect way to avoid struck-by rolling hazards?
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The answer is: A.Position a worker to signal you when operating a vehicle in reverse gear without audible forward alarm

When operating vehicle in reverse gear, the operator cannot always see whether the worker who gives the signal able to see the moving vehicles or not.

Which is why an audible sound for moving vehicles is needed so the other workers could notify the location of your vehicles and avoid themselves from being crushed.

3 0
3 years ago
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Which level of management sets general​ policies, formulates​ strategies, approves all significant​ decisions, and represents th
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Answer: Top managers.

Explanation: Top managers examples are board of directors, president, vice-president, and CEO. These managers are duly responsible for controlling and overseeing the entire organization. They set and develop goals, strategic plans, company policies, and make decisions on the direction of the business. These top managers are responsible for controlling and overseeing the entire organization with the aim of achieving organization goals.

5 0
3 years ago
Fine Stationery makes personalized stationery of the highest quality. The company maintains a stock of blank note cards, calling
miskamm [114]

Answer:

The manufacturing cycle efficiency is 0.219

Explanation:

In order to calculate the manufacturing cycle efficiency we would have to calculate the following formula:

manufacturing cycle efficiency=value added time/throughput time

value added time= 40 min

throughput time=Process time+Inspection time+movie time+Queue time

throughput time=40+5+15+2+120

throughput time=182 min

Therefore, manufacturing cycle efficiency=40/182

manufacturing cycle efficiency=0.219

The manufacturing cycle efficiency is 0.219

4 0
3 years ago
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