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
belka [17]
4 years ago
7

As a general rule, a company's debentures have higher required interest rates than its mortgage bonds because mortgage bonds are

backed by specific assets while debentures are unsecured. True False
Business
1 answer:
Burka [1]4 years ago
6 0

Answer:

True

Explanation:

It is because the investor will require returns that compensate for the level of risk that is associated with the investment. From the investor’s perspective, the required returns must be lower on less riskier bonds (backed by assets) and higher returns are required on highly risky investments. As debentures are not backed by assets, this means they are highly riskier than bonds that are backed by specific assets. So the required return on debentures would be higher.

You might be interested in
A success biologists main interest area would be
Novay_Z [31]
A success biologist main interest area would be biology
6 0
3 years ago
Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset alloca
den301095 [7]
Since you provide no relevant number, 

In order to find out the optimal Asset allocation, you should find out which investment opportunities that Provide the highest return with the lowest standard deviation in the risk department

hope this helps
4 0
3 years ago
Is anyone gonna help I posted the same thing 3 times and no one will help. Ive been stuck in my room for days trying to get this
zlopas [31]
Right a argumentive essay about people political opinions xx
6 0
3 years ago
Read 2 more answers
The Corner Market has decided to expand its retail store by building on a vacant lot it currently owns. This lot was purchased f
marysya [2.9K]

Answer:

a. The current market value of the land

Explanation:

An expansion project costing plays a huge role. According to relevant cost, all irrelevant cost in the business should not be considered while analyzing a project. In the past, cost incurred in purchase of the land and its improvement is sunk cot, hence these expenditure ares irrelevant while analyzing the expansion project. The only cost which is to be considered is current market value of the land.

5 0
3 years ago
What will be the resulting change in equilibrium of the chocolate bar market
myrzilka [38]

Equilibrium price will increase and quantity will decrease will be the resulting change in the equilibrium of the chocolate bar market.

The equilibrium charge is the rate at which the amount demanded equals the amount supplied. It's far decided through the intersection of the demand and deliver curves. A surplus exists if the amount of an excellent or carrier provided exceeds the amount demanded on the contemporary charge; it causes downward strain on the charge.

Equilibrium is the nation wherein market supply calls for balance every other, and as a result, costs come to be strong. Typically, an over-supply of goods or services causes expenses to move down, which results in a higher call for—while an underneath-deliver or shortage causes fees to head up resulting in less demand.

Upward shifts inside the supply and demand curves have an effect on the equilibrium rate and amount. If the deliver curve shifts upward, meaning deliver decreases however demand holds constant, the equilibrium rate will increase but the quantity falls.

Learn more about the Equilibrium price here brainly.com/question/26075805

#SPJ4

3 0
2 years ago
Other questions:
  • Aggregate Demand & Aggregate Supply Graphs. For each of the scenarios below, you will be required to draw an AD-AS graph and
    13·1 answer
  • What time does the stock market open central time?
    9·1 answer
  • A contract between Boeing and Delta in which Boeing supplies planes
    9·1 answer
  • The debt ratio is used: Question 23 options: To measure the ratio of equity to expenses. To assess the risk associated with a co
    14·1 answer
  • 1. Farmer Brown has four fields that can produce corn or tobacco. Assume that the trade-off between corn and tobacco within each
    12·2 answers
  • You invest $200 in stocks and sell them one year later for $230. Use the instructions in Lesson 3 to calculate the ROI dollar am
    13·1 answer
  • When planning her company's annual sales meeting, Cynthia sets up a chat room months in advance and encourages people from each
    6·1 answer
  • 15.The following information is available for an economy. On the basis of information calculate:
    5·1 answer
  • On December 30, 2017, the Board of Directors of Blue Manufacturing, Inc. committed to a plan to discontinue the operations of it
    10·1 answer
  • What is 1+1?<br> (100 points, totally not free)
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!