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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

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Answer:

Answer is a.

Explanation:

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Encumbrances                                 6,000

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Encumbrances outstanding            6,000

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Trade industry short note​
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Answer:

Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.

6 0
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Suppose society consists of four individuals: Andy, Bill, Carl, and David. Andy has $20,000 of income, Bill has $40,000 of incom
aliya0001 [1]

Answer:

Taking $1 from Carl and giving it to Andy would increase society's total utility.

Explanation:

Since Andy's income is less than other three people when a $1 taken from Carl would increase Andy's utility more than the loss in utility of Carl. Thats why total utility would increase.

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Sydney has worked for WillCo for the last 20 years. She just had her 60th birthday and is thinking about retirement. WillCo spon
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Once the workers become qualified participants, they can diversify certain percentage of their stocks. From the 1st-5th year, a qualified participant is allowed to diversify about 25% of his or her stock account and about 50% in the 6th year.

Based on the explanation, since Sydney has worked for WillCo for the last 20 years, Sydney can diversify 50% of her WillCo stock.

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What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize this
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Answer:

The legislature budget board and the governor are authorize to transfer money from one agency to other.

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Money needs to be transferred from 1 agency to other when legislature is not in session:

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