Answer: Financial effects poses as economical risk while an improvement in career and better opportunity poses as potential economic benefit
Explanation:
One potential economic risk Lisa would have to face is that she would have issues with finances for the time being between when she resigned from her job, through her Master's and till she gets another job.
One potential economical benefit towards this decision is that she would have made an advancement in her career and would be at better place career wise and worth wise to compete for better jobs and improved pay from the place she left.
Answers
1) Time
2) cost analysis or performance measurement.
Explanation
Earned value — it integrates cost, time and the work done (or scope) and can be used to forecast future performance and project completion dates and costs...
Answer and Explanation:
a. The computation of price (expressed as a percentage of the face value) is shown below:-
Price = Face value ÷ (1 + Yield to maturity)^Number of the compounding period
= $1,000 ÷ (1 + 0.0323)^1
= $1,000 ÷ 1.0323
= $968.71
Price expected as a percentage to a face value = Price ÷ Face value × 100
= $968.71 ÷ $1,000 × 100
= 96.87%
b. The computation of credit spread of AAA-rated corporate bonds is shown below:-
Credit spread = Yield of AAA-rated corporate bond - Yield of treasury bond
= 3.23% - 3.15%
= 0.08%
c. The computation of credit spread on B-rated corporate bonds is shown below:-
Credit spread = Yield of B-rated corporate bond - Yeld of treasury bond
= 4.94% - 3.15%
= 1.79%
d. The credit rating for a bond changes with its respective credit risk change. That implies the bond 's rating would be lower the lower risk, and likewise.
The investor is demanding higher returns on risky bonds for additional risk-taking. Hence the credit spread is widening as the rating of bonds falls with an increase in the risk.
