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
Arisa [49]
3 years ago
8

(I) Because interest rates on Treasury bills are more volatile than rates on long-term securities, the return on short-term Trea

sury securities is usually above that on longer-term Treasury securities.
(II) A Treasury STRIP separates the periodic interest payments from the final principal repayment.
A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.
Business
1 answer:
Fittoniya [83]3 years ago
5 0

Answer:

B) (I) is false, (II) true.

Explanation:

The interest rate of longer-term securities is usually higher than the interest rate of short-term securities because more risk is associated with the longer-term securities. An example of the risks associated with long-term securities is that it possible for inflation to make value of the payment to fall. Another risk is when there is a rise in the interest rate which usually lead to a fall in the bond prices.  

Treasury STRIPS refers to bonds that are offered for sale at a discount to their face value. Their major attribute is that they do not pay interest to investors but the full face value of the bonds is paid to the investor when the bonds mature. This means the bonds mature at par.

The full meaning of STRIPS is Separate Trading of Registered Interest and Principal of Securities, and they are types of bonds that are commonly referred to as zero-coupon bonds because no interest or coupon is paid by them.

From the above, we can see that (B) is the correct option in the question. That is, (I) is false, (II) true.

You might be interested in
When a business cycle enters a trough of a recession or depression, the federal government can use _______ and ________ to offse
Korolek [52]

Answer: Monetary and fiscal policies

Explanation: Monetary and fiscal policies are two tools of the governments all over the world to stabilize economy in times of depression or recession.

These two can be explained as follows :-

1. Monetary policy refers to the decisions taken by the govt. to stabilize economy by adjusting the interest rates on short term borrowings or by changing the supply of money in the economy as per the need.

2. Whereas in fiscal policy federal govt. use tax collection and expenditure control for coping with depression or recession.

7 0
4 years ago
HELP PLZ NO DOWNLOADS OR LINKS IT WILL BE REPORTED AND ANY UNHELPFUL ANSWERS
pochemuha

far left = top left

middle left = top right

left middle = bottom right

far left = bottom left

6 0
3 years ago
Which of the following statements concerning income tax rate structures is false?
soldi70 [24.7K]

Answer:

a) Under a progressive rate structure, the marginal rate and the average rate are equal

Explanation:

There are basically three types of tax structure which are as follows

1. A regressive tax levied the similar percentage in the goods that are purchased irrespective of the income of the buyer it would not be good for the poor earners

2. A proportional tax levied the similar tax rate for all types of individuals irrespective of the income

3. A progressive tax levied the high percentage who has higher income as they can afford to pay more and the lower percentage for the lower income and vice versa.

So based on the given options, the option A is false and hence the same is to be considered

7 0
4 years ago
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses
harkovskaia [24]

Answer:

the total product cost is $188,800

Explanation:

The computation of the total product cost is given below:

= Direct material + direct labor + Total manufacturing overhead

= $88,000 + $44,500 + $56,300

= $188,800

Hence, the total product cost is $188,800

We simply added the above 3 items to determine the total product cost

4 0
3 years ago
Ziff Tech Inc., a technological firm, funds Tictoe Corp., a computer processor designing company, with five percent of its annua
pishuonlain [190]

Answer: Strategic Investment

Explanation:

Here , in this particular case the strategic investment best describes an alliance in between the organizations i.e. Ziff Tech and Tictoe Corp. Strategic investment under this scenario is portrayed as a transaction which is moreover closely inclined towards a joint ventures. Under strategic investments, one organization makes the initial investment into another organization.

5 0
4 years ago
Other questions:
  • Which behaviors might lead someone to have a low credit score?
    8·2 answers
  • What is the first step in financial planning?
    5·2 answers
  • Goals are typically not set for the organization but for the stakeholders outside the organization.
    8·1 answer
  • Randall Company manufactures chocolate bars. The following were among Randall's manufacturing costs during the current year: Wag
    5·1 answer
  • In year 1, Firm A paid $50,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,140 and $7,200 d
    6·1 answer
  • Liam is considering putting money in an investment plan that will pay him $52,000 in 12 years. If Liam's opportunity cost rate i
    5·1 answer
  • An importing business is involved in international business when it buys goods from other countries and sells them in
    15·1 answer
  • Do you imagine yourself becoming an entrepreneurship and managing your business in the future?
    15·2 answers
  • annual gross potential rental income from a property minus expenses (vacancy and collection losses, operating expenses, replacem
    8·1 answer
  • Ocean co. just paid a dividend of $2 per share out of earnings of $4 per share. if the book value per share is $25, what is the
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!