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natali 33 [55]
2 years ago
12

The reason that interest rate risk is greater for ____ term bonds than for ____ term bonds is that the change in rates has a gre

ater effect on the present value of the ____ than on the present value of the ___
Business
1 answer:
meriva2 years ago
4 0

The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.

<h3>What is a Long-term Bond?</h3>

Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.

They usually pay a higher interest rate than the short-term bonds which span between a year and three years.

See the link below for more about long-term bonds:

brainly.com/question/3521722

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Explain the roles of monetary and fiscal policy in causing and ending hyperinflation.
german

Answer:

Explanation:

Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.

The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.

Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.

3 0
4 years ago
The market for milk is initially in equilibrium. milk producers engage in an advertising program to encourage milk drinking, whi
maria [59]

Standard demand and supply analysis tells us that <u>"the equilibrium quantity of milk will rise, but we can't determine how the equilibrium price will be affected".</u>


Supply and demand is maybe a standout among the most key ideas of financial aspects and it is the foundation of a market economy. Demand alludes to how much (amount) of an item or administration is wanted by purchasers. The amount Demanded is the measure of an item people will purchase at a specific value; the connection among cost and amount requested is known as the request relationship. Supply represents how much the market can offer. The amount provided alludes to the measure of a specific decent makers will supply while getting a specific cost.

4 0
3 years ago
During the year, the Senbet Discount Tire Company had gross sales of $1.19 million. The company’s cost of goods sold and selling
Zigmanuir [339]

Answer:

Net income is $162,470

Operating cash flow is $280,470

Explanation:

The company net income can be computed thus:

Sales revenue                        $1,190.000

less:

Cost of goods sold                ($588,000)

gross profit                             $602,000

selling expenses                     ($241,000)

depreciation                             ($118,000)

EBIT                                        $243,000

Interest($800,000*4%)          ($32,000)

EBT                                          $211,000

Tax at 23%                               ($48530 )

Net income                               $162,470

Besides the operating cash flow is net income plus depreciation

$162,470+$118,000=$280,470

5 0
3 years ago
ryugvbhjwfbdussssdjvvvvvvvvvvvvvvvjjjjjjjjjjfjfjffffffjffffffffffffffffffffffjjjjjjjjjjjjjjjjjjjjjjjj
sashaice [31]
Yes i totally agree :/
6 0
3 years ago
EXERCISE 6-3
AfilCa [17]

Answer:

bdfngmhgfsadfhfh,j.,gfdbn,.kj,gfdg

Explanation:

dvsvdsvd

7 0
4 years ago
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