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KATRIN_1 [288]
3 years ago
8

Assume that interest rates on 20-year Treasury and 20-year corporate bonds are as follows T-bond = 3.72% AAA = 4.12% A = 4.64% B

B = 5.18% The differences in these rates were probably caused primarily by:
Business
1 answer:
Luba_88 [7]3 years ago
4 0

Answer: Default risk differences.

Explanation:

The Default risk is the inherent risk a lender faces that a borrower will not pay them back the debt they want to borrow. The lender will therefore charger a high return to cater for this risk. The higher the risk, the higher the return charged.

T-bonds have no default risk because they are guaranteed by the US Government which is why it's rate is the lowest. For the other bonds, there is something called a Credit rating. Bonds are usually rated on how risky it will be to lend to the company borrowing with AAA being of the lowest risk. Therefore as one goes up from AAA, the bonds will have higher default risks.

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In an open economy, as the price level increases, a(n) ____ in demand in the quantity of domestic goods results in a(n) ____ in
vladimir1956 [14]

Answer:

a. ​ decrease, decrease 

Explanation:

When prices increase, domestic goods becomes more expensive and the quantity of domestic goods demanded falls and export falls.

Therefore, because of the decease in quantity of domestic goods demanded, the quantity of GDP demanded falls.

I hope my answer helps you

8 0
4 years ago
involves the process of defining the marketing mix variables so that target customers have a clear, distinctive understanding of
lord [1]

Answer:

Correct option is Positioning.

Explanation:

Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors.

<u>Marketing positioning</u> involves the process of defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products.

5 0
3 years ago
How often should you typically monitor your checking account?
Licemer1 [7]
You should monitor your checking account Monthly.
5 0
3 years ago
Linetech Company's bank statement showed an ending balance of $8,300. Items appearing in the bank reconciliation included: outst
Valentin [98]

Answer:

$9,215

Explanation:

Given that,

Bank balance = $8,300

Outstanding checks = $650;

Deposits in transit = $1,300;

Bank service charges = $53

Bank error = $265

Book cash balance:

= Bank balance - Outstanding checks + Deposits in transit + Bank error

= $8,300 - $650 + $1,300 + $265

= $9,215

Therefore, the correct cash balance at the end of the month is $9,215.

8 0
3 years ago
Discussion Topic
Ganezh [65]

Answer:

Clarity and accuracy are important parts of writing because it helps people understand what the writer is talking about. You don't want people to read your report or proposals and be confused.

Explanation:

5 0
3 years ago
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