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BigorU [14]
2 years ago
13

How do bonds earn income

Business
1 answer:
mario62 [17]2 years ago
8 0

Answer:

The owner of the bond receives interest payments, known as the coupon, throughout the life of a bond, at the interest rate that was determined when it was issued.

Explanation:

They are debt obligations, meaning that the investor loans a sum of money (the principal) to a company or a government for a set period of time, and in return receives a series of interest payments (the yield).

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Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvest
noname [10]

Answer:

The correct option is (A) price; reinvestment

Explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

4 0
3 years ago
Employers can try to overcome the moral-hazard problem involving their employees by:
BartSMP [9]

Answer:

Option D             

Explanation:

In simple words, moral hazard refers to the situation when an individual do not act with full responsibility due to the fact that any loss from their behavior will be borne by some third party.

Thus, by assessing the employees before employment by a test will help to decide the employer if the individual is worthy of the job or not. Thus, efficient employees will be selected and less mistakes will occur.    

5 0
3 years ago
Summary and reflection ....<br>how can we manage the problem of scarcity ?
Effectus [21]

The main thing we can do to manage the problem of scarcity is to not overspend.

Scarcity happen when the number of demand in our society heavily outnumber the amount of  resources available. By observing our consumption behavior today, we will notice that a lot of people spend money to buy more goods or services that they actually need.

If we control this overspending behavior, not only people who overspend can save some of their money, there will be a lot of goods/services left for other people.

7 0
3 years ago
Read 2 more answers
Crystal Lodging recorded $330,000 in revenues, $247,500 in expenses, and $45,000 of dividends for the year. The company began th
Brilliant_brown [7]

Answer:

b.$127,500 increase

Explanation:

Using Accounting Equation we can find thetotal increase in total assets:

Assets = Equity + Liabilities

Change in Assets = Change in Equity + Change in Liabilities

Change in Assets = $37,500 + $90,000

Change in Assets = $127,500

Total Change in equity and liabilities will be equal to the change in Assets.

So, the correct answer is b.$127,500 increase.

7 0
3 years ago
The suggestion that disparate impact should be measured only at the ______ ignores the fact that title vii guarantees these indi
Yuri [45]

bottom line. This is a direct quote from the textbook by Cengage called Employment and Labor Law.

3 0
3 years ago
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