Answer: The correct answer is False.
Explanation: Long term bonds are riskier than short term bonds, making the answer False.
The longer the time period for bonds, the greater probability that interest rates will rise (and negatively affect a bond's market price). Investors often buy bonds and then resell them as an investment. If they attempt to sell them before maturity they may be faced with a deeply discounted market price. Short term bonds are more stable because it is probable that the investor will keep the bond for the entire life of bond. This eliminates the risk of resale, with the investor cashing in their bond at the predetermined rate on the predetermined date.
Answer:
the Interest rate on corporate bond is 7.06%
Explanation:
The computation of the rate of interest is shown below:
As we know that
The Interest rate on corporate bond × (1 - tax rate) = Municipal bond yield
The Interest rate on corporate bond × (1 - 0.32) = 4.80%
The Interest rate on corporate bond × 0.68 = 4.80%
The Interest rate on corporate bond = 4.80% ÷ 0.68
= 7.06%
Hence, the Interest rate on corporate bond is 7.06%
The concept that best describes Jill's action of contacting only the first three suppliers instead of calling all eight suppliers is <u>A) cognitive limitations.</u>
<h3>What are cognitive limitations?</h3>
Cognitive limitations are the human and information processing restrictions imposed on decision-making. The originate from the limited human cognitive nature and information processing abilities. Cognitive limitations lead to probability distortions. They cause errors in decision-making.
The implication of Jill's action is that she might be making the wrong decisions.
<h3>Answer Options:</h3>
A) cognitive limitations.
B) optimal decision making.
C) the illusion of control.
D) escalating commitment.
Thus, the concept that best describes Jill's action of contacting only the first three suppliers instead of calling all eight suppliers is <u>Option A</u>.
Learn more about cognitive limitations at brainly.com/question/13649097
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