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
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

You might be interested in
If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.
FromTheMoon [43]

A decline in the growth rate of labor productivity means that the growth rate in the number of goods or services that can be produced by 1 hour of work has declined.

<h3>What is the labor productivity growth?</h3>

This is used to refer to the growth in the output. This is measured by increase in workers productivity per hour.

It is what causes them to produce more than they would given the number of work hours available.

Read more on labor productivity here:

brainly.com/question/6430277

#SPJ1

5 0
2 years ago
Are the costs of debt and equity observable in the capital markets? If not, how do you estimate that cost of capital?
Levart [38]

Depending on the supply and demand of equity, a bond’s price can vary, thus the premium or discount price.

For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell equity. On the other hand, if the interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.

Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply by adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond.

The dividend discount model (DDM) is a procedure for valuing the price of a stock by using the predicted dividends and discounting them back to the present value. If the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.

Learn more about   equity here

brainly.com/question/1957305

#SPJ4

3 0
2 years ago
It is impossible for those who have good intentions to have a cultural misunderstanding.
nadezda [96]
<span>no it is not impossible for those who have good intentions to have a cultural misunderstanding.</span>
4 0
4 years ago
Read 2 more answers
Why do you think Alice Chou thinks a rewards program is necessary for My developer Works because so many profiles have already b
sergiy2304 [10]

Answer:

Alice monitors the data from this social platform to see which pages (content, material) gets the most views. When she identifies it, she knows that is the content they need to push further, as it gains the most traction in their professional audience. Since every resolved question on the platforms resembles a saving by cutting the cost from their call center customer care, it is essential to follow the metrics which would identify if the helping content is relevant.

Yes, the rewards program is a plus as it creates an incentive for content creators to produce relevant helping content. However, it should be significantly smaller than the mentioned call center savings. Otherwise, the two amounts would break-even, and it wouldn't be more cost-effective for the company.

8 0
3 years ago
Friendly Faces, a not-for-profit organization, sets a target to feed 100 children every day for one year. Rehaan, the local reso
Masja [62]

Answer:

C. tactical plan

Explanation:

3 0
4 years ago
Other questions:
  • What is a sound recorder used for
    12·1 answer
  • How did trickle-down economics claim to increase government tax revenues?
    7·1 answer
  • Present all the journal entries including the adjustments that would be made on July 31, 2015, the end of the fiscal year, for e
    9·1 answer
  • The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year fro
    7·1 answer
  • The difference between slope and elasticity is that slope _________.a. is a ratio of two changes, and elasticity is a ratio of t
    15·2 answers
  • 5. Describe a product you know of that has elastic demand. Why is the demand for this
    12·1 answer
  • Immediately after a hurricane, it is likely that the quantity demanded for tree cutting/removal services will ______ the quantit
    13·1 answer
  • LO 2.1Identify the three primary classifications of businesses and explain the differences among the three.
    7·1 answer
  • Marshall Officer is a stockholder in Endrun Investments, which is organized as a C Corporation. Endrun recently lost a major cou
    13·1 answer
  • A competitive firm maximizes profit by choosing the quantity at which.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!