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2 years ago

the spread between the interest rates on bonds with default risk and default-free bonds is called the:

Business

1 answer:

jeka57 [31]2 years ago

5 0

The spread between the interest rates on bonds with default risk and default-free bonds is called the risk premium.

A default-free bond is a bond in which the bond issuer would not miss scheduled payments of either the coupon or principal. Bonds issued by the government are generally considered to be default-free. This is because the government can print money to make payments.

A bond with a default risk is a bond in which the bond issuer can miss scheduled payments of either the coupon or the principal. Bonds issued by private individuals are generally considered to be bonds with default risk.

Bondholders usually demand a compensation for holding bonds with a default risk. This compensation is known as risk premium.

Risk premium = return on bonds with default risk - return on default- free bond.

To learn more, please check: brainly.com/question/4304080?referrer=searchResults

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Why are suppliers in purely competitive markets efficient

Lisa [10]

Answer: because it forces firms to achieve maximum efficiency (productive and allocative efficiency). Requires that goods be produced in the least costly way. Firms are forced to produce at the minimum average total cost in the long run.

Explanation:

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3 years ago

You have agreed to loan some money to a friend at a simple interest rate of 150% which is outrageous but still about half of the

Cerrena [4.2K]

Answer:

We give our friend 437.5 dollars

Explanation:

We have to discount from 500 dollar the interest over time, as the 500 is the value our friend will return in 4 weeks ( a month) not the amount received Hence:

nominal x discount rate x time = discount

being rate and time in the same metric

rate is annual so we express time in portion of a year

500 x -1.5 x 1/12 = -62,5‬

We have to discount 62.5 dollar from the nominal

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500 - 62.5 = 437.5

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3 years ago

is the process managers use to continually monitor all phases of the production process to ensure that quality is being built in

Karo-lina-s [1.5K]

Answer:

Statistical quality control (SQC)

Explanation:

Statistical Quality Control (SQC) is the term used to describe the set of statistical tools used by quality professionals(managers). SQC is used to analyze the quality problems and solve them.

Statistical quality control refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services.

it is used to monitor all phases in a production process.

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3 years ago

When cash is received, it is considered negative cash flow. <br> a. True <br> b. False?

mash [69]

True......................................

6 0

3 years ago

Read 2 more answers

You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $94,000. You negotiate a six-year

natulia [17]

Answer:

Purchase of Tesla Model X Sport Utility Vehicle

The amount of the balloon payment six years from now is:

= $39,322.67.

Explanation:

a) Data and Calculations:

Cost of vehicle = $94,000

Period of loan = 6 years

Terms: No down payment and no monthly payments during the first year.

Monthly payment after the first year = $1,350

Total payments to be made = $104,122.67

The total payments including interest from an online financial calculator:

Payoff: 6 years 5.13 months

You will need to pay $1,350.00 every month for 6 years 5.13 months to payoff the debt.

Monthly Payment $1,350.00

Time Required to Clear Debt 6.43 years

Total of 77.13 Payments $104,122.67

Total Interest $10,122.67

Total monthly payments from second year to fifth year = $64,800 ($1,350 * 48)

Expected balloon payment to cover the remaining principal = $39,322.67 ($1014,122.67 - $64,800)

4 0

3 years ago