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kipiarov [429]
4 years ago
5

If the pure expectations theory is correct (that is, the maturity risk premium is zero), which of the following is CORRECT? a. A

5-year T-bond would always yield less than a 10-year T-bond. b. The yield curve for corporate bonds may be upward sloping even if the Treasury yield curve is flat. c. An upward-sloping Treasury yield curve means that the market expects interest rates to decline in the future. d. The yield curve for stocks must be above that for bonds, but both yield curves must have the same slope. e. If the maturity risk premium is zero for Treasury bonds, then it must be negative for corporate bonds.
Business
1 answer:
elixir [45]4 years ago
6 0

Answer:

The answer is A

Explanation:

I know this because i did this awhile back have a good day:)

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Atlantis Fisheries issues zero coupon bonds on the market at a price of $489 per bond. These are callable in 6 years at a call p
nataly862011 [7]

Answer:

the yield to call for these bonds is 5.7705 %

Explanation:

In this question, we are required to find the yield to call on the bonds

The Information we have is as follows :

PV = 489

PMT = 0

FV = $580

N = 6

P/YR = 2 ( semiannual compounding )

YTC = ?

Using a Financial Calculator and inputting the appropriate values as above, the yield to call is 5.7705 %

8 0
3 years ago
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 35%, while stock B has a standard
Licemer1 [7]

Answer: the options are listed below.

A. 18.45%

B. 17.67%

C. 23%

D. 19.76%

The correct option is D. 19.76%.

Explanation:

σ2p = (0.402)(0.352) + (0.602)(0.15)2 + (2)(0.4)(0.6)(0.35)(0.15)(0.45)

σ2p = 0.039046

σp = 19.76%

5 0
4 years ago
The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of:_____
OlgaM077 [116]

The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality.  In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.

According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.

#SPJ4

3 0
2 years ago
When the economy is in full employment, * 10 points A. unemployment is zero. B. only cyclical unemployment is zero. C. only fric
Rudik [331]

Answer:

c

Explanation:

Full employment is when available labour in an economy  are efficiently used. When there is full employment, cyclical unemployment is zero. There would still be frictional unemployment.

Frictional unemployment is unemployment that exists between the time a person leaves their current unemployment and get another job.

4 0
3 years ago
Sunk costs: are the losses which have already been incurred and which are unrecoverable. are the losses associated with failed b
ASHA 777 [7]

Answer:

are the losses which have already been incurred and which are unrecoverable. 

Explanation:

Sunk costs are costs that have already been incurred and are not unrecoverable. They are not considered in future decision making.

Total cost is the sum of fixed and variable cost.

I hope my answer helps you

6 0
3 years ago
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