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Yuki888 [10]
3 years ago
14

What factors make capital appreciation bonds (CABs) a controversial method for local governments to finance projects

Business
1 answer:
sineoko [7]3 years ago
5 0

The factors that make capital appreciation bonds (CABs) a controversial method for local governments to finance projects include "Local governments tend to owe investors way above the amount borrowed."

Another factor that makes capital appreciation bonds (CABs) a controversial method for local governments to finance projects is that they enable local governments to fund new projects without raising taxes.

Capital appreciation bonds (CABs) is often described as a form of municipal security whereby its interest on principal rises and compounds until maturity.

Capital appreciation bonds (CABs) allows investor earns a sole payment indicating the face value of the bond and all accrued interest.

Hence, in this case, it is concluded that Capital appreciation bonds (CABs) are a controversial method of financing projects.

Learn more here: brainly.com/question/14325978

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4 years ago
1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return
inessss [21]

Answer:

$812.20

Explanation:

Given the following bond characteristic:

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6 0
3 years ago
1. Define scarcity. What signifies to managers that a resource used in production is becoming scarce? What impact does this have
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Answer:

scarcity means that a good is limited in supply, relative to it's demand.

Explanation:

By limited, it means that the available resources are not enough for the satisfaction of a need.

Price hikes tells us of scarcity of a resource. When the price of a resource or good gets increased or is continuously increasing the price of the resource may show that it is scarce.

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In the late nineteenth century, what helped narrow the gradations of freedom amongst white Americans? a. Indentured servitude ha
ElenaW [278]

In the late nineteenth century, Judith Sergeant Murray wrote about women’s intellect being equal- this helped narrow the gradations of freedom amongst white Americans.

Option: B

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In the late nineteenth century there was a conflict in between white Americans about the freedom. Their fight against each other graded by the help of writer and other professionals who wrote about their strong points. Judith Sergeant Murray who was an American writer and advocate wrote about women's right.

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