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
earnstyle [38]
3 years ago
14

You expect interest rates to decline in the near future even though the bond market is not indicating any sign of this change. W

hich one of the following bonds should you purchase now to maximize your gains if the rate decline does occur?A. short-term; low coupon?B. short-term; high coupon?C. long-term; zero coupon?D. long-term; low coupon?E. long-term; high coupon
Business
1 answer:
Dmitriy789 [7]3 years ago
4 0

Answer:

C. long-term; zero coupon bond.

Explanation:

If the investor is worried about declining interest rates on his present Investment, the best option to get is long term zero coupon bond.

They are long term in nature. Zero coupon bonds pay the full face value on maturity. It does not have periodic payments to the beneficiary. At maturity the investor will receive the par value.

Zero coupon bonds do not pay interest so are not subject to interest fluctuations. It operates on a discount and at maturity the full value is guaranteed.

You might be interested in
Even though it was extra work for the company to implement, Johan was happy that consumers had asked for a better grade of plast
aliya0001 [1]

It should be noted that the competitive advantage of Johan's company is being affected by Demand conditions.

<h3>What are Demand conditions?</h3>

Demand conditions  can be regarded as the size and nature of the customer base for products,  and this usually bring about innovation and product improvement.

This is why Johan was happy that consumers had asked for a better grade of plastic for the toys his company produced.

Learn more about Demand conditions at:

brainly.com/question/4804206

7 0
2 years ago
Potential GDP is:
Eva8 [605]

Answer:

b. maximum amount of output that can be produced given the labor force, capital stock, and technology.

Explanation:

GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically

On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate

Therefore option b is correct

7 0
3 years ago
Donald is given the assignment by his PR firm to prepare a news release designed to be distributed through online search engines
IrinaK [193]

Answer: The answer is Keywords.

Explanation: Keywords are the words and phrases in a particular website that make it possible for people to be able to find the website when using search engines.

For example, typing "interview questions" into a search engine will bring up a bunch of websites who have used the keywords "interview questions" in their website.

Therefore, in order for Donald in the scenario above to optimize search engine results, he should incorporate important keywords that pertain to the news release that are to be distributed.

5 0
3 years ago
If the price of walnuts rises, many people would switch from consuming walnuts to consuming pecans. But if the price of salt ris
lilavasa [31]

Answer:

b

Explanation:

4 0
2 years ago
Mike sells small-business health insurance programs, working on straight commission. Closing the sale is an extremely stressful
Harlamova29_29 [7]

If closing the sale is an extremely stressful point for him. If he does not close the sale, the outcome will be he will generate no income.

<h3>What is income?</h3>

Income can be defined as a the cash receive from the sales of goods and services.

Based on the given scenario in a situation were Mike did not close the sale for the day this will tend to mean that he will generate no revenue or income reason being that closing the sale will enables him to generate income.

Therefore the outcome will be he will generate no income.

Learn more about income here:brainly.com/question/25745683

6 0
2 years ago
Other questions:
  • Suppose the economy is currently in long-run equilibrium. The government has just decided to lower income taxes. The long-run im
    7·1 answer
  • The following events occurred for Favata Company: a. Received $10,000 cash from owners and issued stock to them. b. Borrowed $7,
    8·1 answer
  • "Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quan
    14·1 answer
  • When preparing the statement of cash flows using the indirect​ method, a decrease in current liabilities is added to the net inc
    6·1 answer
  • A client who has been training at high intensities in preparation for a triathlon reports joint pain, excess fatigue, and the in
    8·1 answer
  • On February 20 , 2018, Bill purchased stock in Pink Corporation (the stock is not small business stock) for $1,000. On May 1, 20
    15·1 answer
  • By promoting transparency, the government can improve
    13·1 answer
  • Which of the following is NOT one of the steps taken in the financial planning process? a. Develop a set of forecasted financial
    7·1 answer
  • Entrepreneurs who start businesses because they cannot find work any other way are______.?
    11·1 answer
  • Which of these is not a main advantage for a business joining a cooperative?
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!