True,When comparing a 10-year bond versus a 1-year bond, the 10-year bond has a much greater interest rate risk
<h3>What is
bond?</h3>
A bond is a sort of financial security in which the issuer owes the bearer a debt and is obligated to repay the principle of the bond as well as interest over a specified period of time, depending on the terms. Interest is normally paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a firm. The investor agrees to contribute the corporation a particular sum of money for a set length of time. In exchange, the investor receives interest payments on a regular basis.
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Answer:1. Executive airplanes
2. Brand names
3. Bonds
4. Investment or capital budgeting
5. Financing
Explanation:
Companies properties consist of assets with physical attributes called tangible such land and those without physical attributes refers to as intangible assets such goodwill, trade marks etc, firms can raise capital by selling bonds which is a debt equity or selling stocks which is a proprietary equity, decision on buying or spending or capital project is called investment or capital budgeting decision and the mode of raising money for expenditures is called financing decisions.
Answer:
This question lacks answers
A. currency swap.
B. arbitrage.
C. backwardation.
D. straddle.
<u>The answer is </u><u>b.</u>
Explanation:
Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.
The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).
In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)
