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
enot [183]
3 years ago
8

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that inve

stors face?
Business
2 answers:
bearhunter [10]3 years ago
9 0

<u>The issuer could go bankrupt is the potential risk that investors face. </u>

Further Explanation:

Bond:  

The bond is a long-term debt which the company promises to pay with interest to their bondholders.  

  • The issuer raise capital according to their need and want, they mostly do invest the money. So, this is not a potential risk faced by investors.
  • The bondholders get interest for the investment in the bonds of the company, only the stockholders get the dividend payment by the company or the issuer.
  • This is the only situation where the bondholder may face risk when the company or the issuer goes bankrupt, the issuer may not be able to pay the interest to its bondholders. Therefore, this is a potential risk faced by investors.
  • If the issuer may not make a profit then also the issuer has to pay the interest to its bondholders whether he makes profit or not. It cannot be regarded as potential risk to investors.

Learn More:

1. Stock and bonds  

<u>brainly.com/question/1330190 </u>

<u> </u>

2. Stock price  

<u>brainly.com/question/11192535 </u>

3. Stock portfolio  

<u>brainly.com/question/5728646 </u>

Answer Details:

Grade: High school

Chapter: Stocks and bonds

Subject: Business studies

Keywords:

Bonds are considered to offer a guaranteed return, as they must be honored by law, but which is still a potential risk that investors face.

andrew11 [14]3 years ago
7 0
The potential risk that the investors may face when this is made use is that the issuer may not be able to make profit when the bonds are considered to offer as a guaranteed return because they are honored by law and with that, this will cause the value of the bond to be lowered when exposed in the market in which the return will also be lower when return to the investors. 
You might be interested in
Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 40,000 units dur
Advocard [28]

Answer:

D. $28.50

Explanation:

Peach Equivalent-unit cost = Total Cost / Units

Peach Equivalent-unit cost = ($966000 + $231000) / (40000 units + (10000 units*20% completion))

Peach Equivalent-unit cost = $1197000 / (40000 units + 2000 units)

Peach Equivalent-unit cost = $1197000 / 42000 units

Peach Equivalent-unit cost = $28.50

5 0
3 years ago
"Danielle relies on summer earnings to fund her next year at the university. When she tried to get her old high school summer jo
DanielleElmas [232]

Answer:Danielle relies on summer earnings to fund her next year at the university. When she tried to get her old high school summer job back at local Cool Rags Clothier, she learned that the manager no longer hires college students during the summer months. Which of the following strategies do you recommend that Danielle pursue?Answer C

4 0
4 years ago
To calculate a year-to-year percentage change in any financial statement line item such as sales, you should take the current ye
Makovka662 [10]

Answer:

the prior year's amount

Explanation:

In financial statements when measuring performance increase the percentage change in various financial statement lines are usually used.

Financial statement lines are individual items on financial statements. For example current assets, current liabilities, and sales.

The percentage change aims to compare increase in a financial statement line item against the previous year's amount.

This will give an idea of how much increase has occurred on previous performance.

So it is calculated by deducting previous year amount from current year amount, then divide by the previous year amount and multiply by 100

7 0
3 years ago
Alco roofing company's beginning accounts receivable were $200,000 and ending accounts receivable were $270,000. during the peri
Vesna [10]
Https://quizlet.com/129490981/chapter-7-practice-flash-cards/ 
8 0
3 years ago
Corinne works in procurement for a major electronics company. One of her challenges is ensuring that raw metals, such as tungste
kvv77 [185]

Corinne is very excited because she works with a new company that uses due diligence to track these precious metals from mine to manufacturer to ensure they are not "conflict metals. ".

<h3>What is Due Diligence?</h3>

This refers to the conscious steps which a person takes in order to ensure that he is not committing an offense or taking a good background check.

Hence, we can see that because of Corinne's work with a major electronics company, she is charged with doing due diligence on the raw materials to ensure that they are not "conflict metals. ".

Read more about due diligence here:
brainly.com/question/26383473

8 0
2 years ago
Other questions:
  • ASAP!!!!!!!!!!1
    12·1 answer
  • True or False
    6·2 answers
  • Like a good economist, you calculated the opportunity cost of getting your college degree. suppose that at your university, you
    8·2 answers
  • Florida law states that a vessel operator involved in an accident must report the accident if property damage exceeds what amoun
    9·1 answer
  • You were asked to write a report to management indicating the primary advantage of external recruiting. you chose to focus on ex
    7·1 answer
  • On January 1, Guillen Corporation had 95,500 shares of no-par common stock issued and outstanding. The stock has a stated value
    11·1 answer
  • Greening refers to: a. Answer the need for more carbon dioxide in our air. b. firms acquiring more green backs (U.S. dollars) fr
    15·1 answer
  • A graduating high school student decides to take a year off and work to save money for college. The student plans to invest all
    10·1 answer
  • Marion Cosmetics decides to launch a cream with a claim that it makes skin "10 times smoother and reduces wrinkles by 90%. The c
    6·1 answer
  • ______ across boundaries occurs even beyond the boundaries of the organization to include customers.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!