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earnstyle [38]
4 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]4 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.

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Liula [17]
I think its who . i hope this helps 
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4 years ago
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At Polar Sportswear, orders have significantly exceeded projections, and Chris, the operations director, has decided to hire for
Viktor [21]

Answer:

Variable

Explanation:

As we can see that there is no fixed point that represents there is not a fixed budget also the company not using the zero or cash budget based and the incremental would be used at the time when the demand is in constant

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4 0
3 years ago
The S&P 500 index delivered a return of 25%, 15%, -35%, and -5% over four successive years.
Naya [18.7K]

Answer:

arithmetic average annual return is 0

correct option is B) 0%

Explanation:

given data

return r1 = 25%

return r2 = 15%

return r3 = -35%

return r4 =  -5%

to find out

What is the arithmetic average annual return for four years

solution

we know that arithmetic average annual return is express as

\bar{X} = \frac{\sum x}{N}     .........................1

here \bar{X} is arithmetic mean and ∑x is sum of return and N is number of observation i.e 4

so put here value in equation 1 we get

\bar{X} = \frac{25+15-35-5}{4}

\bar{X} = 0

so arithmetic average annual return is 0

correct option is B) 0%

6 0
3 years ago
The idea that the business cycle is recurrent means that
Anton [14]

<u>Answer:</u>

<em>D) The standard pattern of contraction-trough-expansion-peak occurs again and again in industrial economies. </em>

<em></em>

<u>Explanation:</u>

A recession is a time of declining monetary execution over a whole economy, as often as possible, estimated as two consecutive quarters. Organizations, financial specialists, and government authorities track different monetary markers that can help anticipate or affirm the beginning of downturns. However, they're formally announced by the NBER.

The NBER has the obligation of deciding when a downturn starts and when it closes. All the more explicitly, it is the Business Dating Committee inside the NBER that chooses the pattern of the contraction.

6 0
4 years ago
How many days does your license get revoked for a first time DUI
Slav-nsk [51]

It takes 180 days for your license to  get revoked for a first time DUI



8 0
3 years ago
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