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
MArishka [77]
3 years ago
9

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

Business
1 answer:
jeka57 [31]3 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

You might be interested in
Moon Lee received her bank statement on September 8, showing a balance of $2,009.32. The balance shown in her checkbook was $2,4
Ivenika [448]

Answer:

Reconciled balance for both bank and cheque book statement is $2,572.51

Explanation:

To find the reconciled balance, we start of with reconciling the bank statement with cheque book statement

Bank statement

Balance as per bank statement

$2009.32

Add: deposits in transits

$1,197.87

Less: outstanding checks

($310.18 + $324.50)

Reconciled balance

$2,572.51

Cheque book

Balance as per cheque book

$2,469.31

Add: interest earned

$109.20

Less: service charge

($6)

Reconciled balance

$2,572.51.

8 0
3 years ago
In the economy of Ukzten in 2010, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $2000, a
Blababa [14]

Answer:

I= $1,600

Explanation:

We have to clear Investment from the GDP formula:

GDP= Consumption (C)+ Investment (I)+ Government expenditure (G)+ Net exports (exports-imports)

I=GDP-G-C-(X-M)

The problem gives this information:

GDP: $10,000

G: $2,000

C: $6,000

X: $1,000

M: $600

I= $10,000-$2,000-$6,000-($1,000-$600)

Investment in 2010=$1,600

7 0
3 years ago
Suppose French chocolate soufflé is an inferior good. When income increases and the number of producers in the market decreases
Vadim26 [7]

Answer:

d) The change to the equilibrium price of French chocolate souffle is ambiguous and the equilibrium quantity of French chocolate souffle falls

Explanation:

Inferior goods are those goods whose demand falls with the rise in the income of the consumer.

As per the given case, French chocolate souffle is an inferior good. When income of the consumer rises, his demand for French chocolate souffle will fall.

Similarly, when producers of such an inferior good decrease, the supply of French chocolate souffle shall fall.

With respect to the original equilibrium level, the demand curve shall experience a leftward shift i.e decrease whereas the supply curve too experiences a leftward shift i.e supply falls.

At the new equilibrium level, definitely the equilibrium quantity shall fall, but the change in equilibrium price cannot be ascertained as per the given information.

4 0
3 years ago
The primary purpose of the statement of cash flows is to:.
Komok [63]

Answer:

The primary purpose of the statement of cash flows is to provide information about cash receipts, cash payments, and the net change in cash resulting from the operating, investing, and financing activities of a company during the period.

6 0
2 years ago
Things that you value that are stored digitally such as digital photographs or gift card codes are
VARVARA [1.3K]

Answer: Digital Assets

Explanation: just did the question

3 0
2 years ago
Other questions:
  • Your friends own a lawn care business. They own their own equipment and trailers to transport it. Eventually they buy out anothe
    14·2 answers
  • Larry, a human resources executive at Printopress, caters to the human resources needs of other departments in the company, such
    15·1 answer
  • g "At the end of the current year, the owners' equity in Barclay Bakery is $260,000. During the year, the assets of the business
    10·1 answer
  • Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to unce
    7·2 answers
  • Overdraft fees can be avoided by
    14·1 answer
  • The primary role of a functional strategy is to unify the company's various operating-level strategies. specify how to build and
    8·1 answer
  • How is challah bread made? If I have to dabble the recipe?
    13·1 answer
  • The Fed is the most independent of all U.S. government agencies. What is the main difference between it and the other government
    15·1 answer
  • Which of the following statements is the most correct?
    9·1 answer
  • In a large company, a small team of employees is tasked with conducting monthly tests of security controls. Each month, they sel
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!