1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Blababa [14]
3 years ago
12

What is the risk you are taking when investing in bonds? How can you minimize this risk?

Business
1 answer:
viva [34]3 years ago
3 0

Answer:

Risk: The bonds you own will decline if interest rates rise, interest rate risk.

Minimalize:

- Don't buy bonds when interest rates are low or rising. Buy when stable.

- Stick to short term issues (3 - 5 years)

- Buy bond with different maturity dates

Explanation:

Good luck <3

You might be interested in
The Dot Corporation has changed its year-end from a calendar year-end to August 31. The income for its short period from January
Scilla [17]

Answer:

$10,527

Step by step Explanation:

Ist January to 31 August is 8 months

Therefore;

$54,000 x 12/8 = 81,000

15% x 50,000 = 7,500

25% x 25,000 = 6,250

34% x 6,000 = 2,040

7,500 + 6,250 + 2,040 = 15,790

Short period = 15,790 x 8/12 = $10,526.673.

Therefore The tax for this short period is $10,526.673 approximately $10,527

3 0
3 years ago
Identify two ways lean production might be achieved
Nata [24]

Answer:

VJNJMJNBGNFVF VGJFKVKFKRKELÑKTKFKLRGRLBG

Explanation:NBGNNUKIKUUHKNU6GGGTGJ

4 0
2 years ago
Henry works at a restaurant. One of his best chefs has just called in sick minutes before the dinner rush, and Henry needs to ma
PSYCHO15rus [73]

Answer:

just do math

Explanation:

4 0
3 years ago
you are billed $300 at 5% simple interest for 2 years but given an opportunity to pay only 3% compound interest for 2 years. Whi
balandron [24]
This question is a bit tricky to answer because it does not state how often interest rate is applied so lets say for the simple 5% interest rate the rate of interest was calculated after 2 years you would pay a total interest of $15 since interest was only calculated once but for the 3% calculating every year with compound it would be a total of 18.27 dollars in interest but then you would have to calculate the 5% simple interest the same way which would total to $30 if calculated once a year being more than the 3% compound. But lets say interest is calculated once a month your total for the 5% simple interest would be $360 dollars interest for those 2 years and the 3% compound would be $406.97 dollars in interest. So over all the less amount of times interest compounds the less interest there is making it more worth than the simple but if the compounding occurs more frequently the simple 5% interest is more worth it. In this situation I think it might just be yearly interest which makes the 3% compound more worth taking for this short amount of time.
6 0
3 years ago
During the current year, Walter invests $35,000 in each of two separate corporations. Each investment gives him a 20% ownership
Bond [772]

Answer:

B) Only statement II is correct.

  • II. Has $20,000 of taxable income from Corporation Z.

Explanation:

One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).

On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.

8 0
3 years ago
Other questions:
  • Wang Co. manufactures and sells a single product that sells for $400 per unit; variable costs are $232 per unit. Annual fixed co
    6·1 answer
  • A manufacturer of luxury yachts would use which type of costing​ system?
    5·1 answer
  • You just received a raise at work and consider meat a normal good. This means that your demand for meat will _____.
    15·1 answer
  • A company makes a product and has no way to determine which ones are faulty until an unhappy customer returns it. Three percent
    11·1 answer
  • If the effects of pollution on society as a measure of welfare were included in GDP calculations, that measure level of GDP woul
    11·1 answer
  • QUESTION 1<br> To what does tax progressivity refer? (5 points)
    14·1 answer
  • A component of legal writing that refers to and credits authoritative documents and legal sources is called a (1 point)
    15·1 answer
  • If Congress cuts spending to balance the federal budget, the Fed can act to prevent unemployment and recession by
    10·1 answer
  • Spafford Services, Inc. provides services to clients. On May 1, a client prepaid Spafford Services $71,000 for 6-months services
    12·1 answer
  • Carolyn wants to work as a manager. The position she is hoping to be hired for requires a doctorate degree. For what type of pos
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!