<u>Investing in bonds is risk-free investing in stocks is much riskier:</u>
In addition, bonds generate higher rates of return than markets and are cheaper than inventories. Yet shares usually are made less costly than securities by the debt issuer's obligation to recover principal.
Another danger is that its issuer would mark a bond. In order to allow the borrower to buy the bonds from the bond holding firms and cancel the issue, Callable bonds have Call clauses.
This is typically done where interest rates have declined significantly since the date of issue. Appeals provisions permit the borrower, in order to lower interest rates, to retire existing, heavy-rate bonds and sell low-rate bonds.
Answer:
. All countries can gain from trade if they all specialize in production according to comparative advantage
Explanation:
Comparative advantage is when a country produces a product at a lower opportunity cost when compared with its trading partners.
Absolute advantage is when a country produces more quantities of goods and services than its trading partners.
A country can still have comparative advantage in production if opportunity cost is increasing once it's opportunity cost doesn't become greater than that of its trading partners.
A country can have comparative advantage without having absolute advantage.
I hope my answer helps you.
Answer:
The coupon rate will be 6.6415%.
Explanation:
By using the financial calculator, the I/Y will be computed:
Where
PMT = 7/2 % × 1,000
= $35
PV = -$1,035
FV = 1,000
N = 16 × 2
= 32
It is semiannually, so the number of years got doubled.
Then press CPT and I/Y
I/Y = 3.3207
In order to compute the coupon rate, again financial calculator will be used:
PV = -$1,000
FV = $1,000
N = 32
I/Y = 3.3207
Then Press CPT and PMT
PMT = 33.2075
Coupon rate = PMT/ FV × 100
= 33.2705/ 1,000 × 100
= 3.32075%
The coupon rate will also be double:
= 3.32075% × 2
= 6.6415%
This is the annual rate.
Answer:
74.46%
Explanation:
Since the project has a chance of doubling investment, it has a chance of making a +100% return. The project also have a chance of losing half of its investment that is -50% return. The expected return E(r) is given by:
E(r) = chance of doubling investment + chance of losing half of its investment
E(r) = 0.44(100%) + 0.56(-50%) = 0.44(1) + 0.56(-0.5) = 0.44 - 0.28 = 0.16
σ² = 0.44(100% - E(r))² + 0.56(-50%-E(r))² = 0.44(1 - 0.16)² + 0.56(-0.5 - 0.16)² = 0.310464 + 0.243936 = 0.5544
σ = √σ² = √0.5544 = 0.7446 = 74.46%
The standard deviation is 74.46%
Answer:
This answer is B
Explanation:
i used the answer given on here and got it wrong, its B on edge2020