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alexgriva [62]
3 years ago
7

Ahmad owns an apartment building and has recently had to lower the rent he charges, not only to attract new tenants but also to

keep the ones he has. Which disadvantage of real estate investing is Ahmad most likely experiencing
Business
1 answer:
Yanka [14]3 years ago
5 0

Answer: Interest rate risk

Explanation:

Interest rate risk is described as the potential for investment loss which result from a change in interest rates. The increase in interest rate declines tell value if a bond or other fixed-income investment, the change that occurs in these bond price is known as duration. Generally, it is the risk that arises for bond owners from fluctuating interest rates. The interest rate risk of a bond depends on how sensitive it's price is to interest rate changes in the market

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Next year, the price of a stock is expected to be $2,200 and the stock will pay a $55 dividend. The interest rate is 10%. Based
Rudiy27

Answer:

Stock Price = $103.77 <----ANSWER(2)

Explanation:

6 0
3 years ago
Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01. At this
insens350 [35]

Answer: 12%

Explanation:

A coupon payment on a bond is simply the annual interest payment which the bondholder will get from the bond's issue date till the bond matures. It should be noted that coupons are described in their coupon rate, and this is calculated when one adds the sum of the coupons that are paid per year and then divide it by the face value to f the bond.

Im this case, we are told that Kaiser Industries has bonds on the market making annual payments, with 14 years to maturity, and selling for $1,382.01 and that at this price, the bonds yield 7.5 percent.

Using Excel, the coupon payment will be $120. The coupon rate will now be:

= Coupon payment/Face value

= 120/1000

= 0.12

= 12%

Therefore, the coupon rate is 12%

4 0
3 years ago
In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal
Zigmanuir [339]

Answer:

rise by $40 billion

Explanation:

Calculation to determine what the investment will be

Investment=$100 billion*(100%-60%)

=$100 billion*40%

=$40 billion

Therefore the investment will rise by $40 billion

3 0
3 years ago
Coleman Company purchased goods from Evans with the following terms and details. Sales price, $8,000 Terms, (2/10, n/30) Date of
Alex_Xolod [135]

Answer:

No sale discount,

Shipping cost will be paid by buyer (Coleman Company)

Explanation:

2/10 means if payment is done within 10 days then 2% discount, n/30 means to pay full amount within 30 days. As payment was made after 12 days, so no discount. FOb means free on board shipping point, which means after product left port of supplier country then buyer will be responsible for goods and its shipping cost.

6 0
4 years ago
Describe the gas station and its immediate surroundings.
vladimir1956 [14]
The very first thing that should be considered when it comes to the location of the gasoline station is its accessibility to the consumers. As a general guideline, it should be located approximately 500 ft from any public institution including churches, malls, schools, etc. 
3 0
3 years ago
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