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3 years ago

when investors doubt the creditworthiness of a borrower, what should happen to the price and yield of a bond

Business

1 answer:

denpristay [2]3 years ago

7 0

Answer:

Prices go down, yield go up

Explanation:

As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield

So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up

hence, the same is to be considered

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A store will give you a 2.25% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the ful

OleMash [197]

The implicit borrowing rate is 31.4%.
Given that if payment was made in cash today, the store would reduce the cost of the product by 2.5 percent. This implies that the price you must pay at that time is $195.5, for instance, if the cost of the things is perhaps $200.
If the price is still $200, you will have to pay $200 at the end of the month. A difference of $200 - $195.5 = $3.5 if we compare at the end of the month versus if you pay immediately.This results in an increase of (3.5/196) x 100% = 1.79 %. An increase to bring the price back to $200.
Considering that a year has 12 months, the implicit borrowing rate at the conclusion of that year will be;

([(200/195.5)(12)] - 1) at 100% equals 31.4%.

To learn more about the Implicit Borrowing rate please visit -
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5 0

2 years ago

Which of these do you need to do when receiving criticism? A. Do not respond to criticism. B. Ignore the criticism. C. Respond t

soldier1979 [14.2K]

Answer:

Explanation:

Do not let them know you hear them! Think of them as walls. You cant hear them!

6 0

3 years ago

Read 2 more answers

Best Buy might use all of the methods of change listed below. Which of these includes inputs, strategic plans, target elements o

Strike441 [17]

Answer:

E)Systems model of change

Explanation:

These are the options for the question

A)Organizational structure plan

B) social factors method

C) Organizational arrangements

D)Three stage model of planned change

E)Systems model of change

Best Buy are known with selling of consumer electronics as well as a variety of related merchandise.

Systems model of change can be regarded as a model that focus on big picture perspective of change. The model is base on interaction that exist among the key components of change.

The Systems Model of Change can also known as Organization-Wide Change which focus on the fact that there must be implementation of a change organization-wide and not a implementation in piecemeal

Main components that made up of systems model of change are;

✓target elements of change

✓inputs

✓ strategic plans

✓outputs

3 0

3 years ago

On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days

krek1111 [17]

Answer:

B. Cash 58,800 Accounts Receivable 58,800

Explanation:

Sale of 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days

Is Recorded as

Trade Receivable $ 58,000 (debit)

Revenue $58,000 (credit)

Being Recognition of an Asset - Trade Receivable and Recognition of Revenue less sales discount

On payment of full payment transaction is recorded as

Cash $ 58,000 (debit)

Trade Receivable $58,000 (credit)

Being De-recognition of Asset - Trade Receivable and Recognition of Revenue

3 0

3 years ago

The following events took place for Digital Vibe Manufacturing Company during March, the first month of its operations as a prod

AysviL [449]

Answer:

Explanation:

a. In the income statement, the total revenues and the total expenses are recorded.

If the total revenues are more than the total expenditure then the company earns net income

And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.

Before preparing the income statement, first, we have to compute the net loss or net income which is shown below:

= Sales - cost of good sold - selling expenses - administrative expenses

= $875,000 - $525,000 - $125,000 - $80,000

= $145,000

b. The computation of the inventory balances are shown below:

Direct material = Purchased material - used material

= $168,500 - $149,250

= $19,250

Work in progress = Used material + direct labor wages + factory overhead - transferred units

= $149,250 + $360,000 + $120,000 - $600,000

= $29,250

Finished goods = Transferred units - cost of goods sold

= $600,000 - $525,000

= $75,000

The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:

6 0

3 years ago