Answer:
<u>Price</u> risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
<u>Reinvestment</u> risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
Which type of risk is more relevant to an investor depends on the investor's <u>investment horizon</u>, which is the period of time an investor plans to hold a particular investment.
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Answer:
Buying Center.
Explanation:
A Buying Center is a group if individuals within an organization that are responsible for making purchase decisions.
The Buying Center is also called the Decision Making Unit (DMU), and it includes personnel from various departments.
Answer:
$2,443.95
Explanation:
Given:
Purchased inventory = $4,900
Freight bill paid = $310
Manufacturing returned = 35%
Purchase discount = 33%
Now,
The value of Purchase returns = 35% of $4,900
= 0.35 × $4,900
= $1,715
Therefore,
The Net purchases = Purchased inventory - Purchase returned
or
= $4,900 - $1,715
= $3,185
Also,
Discount = 33% of $3,185
= $1,051.05
Therefore, the final cost of inventory = Net purchases - Discounts + Freight
= $3185 - $1051.05 + $310
= $2,443.95
<span>Open-market options are when the federal reserve buys and sells securities to influence the
money supply.</span>
In the United States, a committee within the Federal Reserve is responsible for implementing monetary policy. The Federal Open Market Committee (FOMC) is comprised of the Board of Governors and five reserve-bank presidents, and it meets eight times throughout the year to set key interest rates and to determine whether to increase or decrease the money supply within the economy.
The FOMC buys and sells government securities to set the money supply. The is process is called open market operations. The government securities that are used in open market operations are Treasury bills, bonds and notes. If the FOMC wants to increase the money supply in the economy it will buy securities. Conversely, if the FOMC wants to decrease the money supply, it will sell securities.
