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2 years ago

when investors doubt the creditworthiness of a borrower, what should happen to the price and yield of a bond

Business

1 answer:

denpristay [2]2 years ago

7 0

Answer:

Prices go down, yield go up

Explanation:

As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield

So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up

hence, the same is to be considered

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University of Florida football programs are printed 1 week prior to each home game. Attendance averages 75 comma 000 screaming a

Ann [662]

Answer :

a) Cost of underestimating demand = $3

b) Average cost per program =$1.90

c) number of program ordered 51,503

d) Stock out risk = 0.3878

Explaination :

As per the data given in the question,

Total purchased program = (2 ÷ 3) × 75,000 = 50,000

Unsold program = 10% × 50,000 = 5,000

a) Cost of underestimating demand = cost of each program - cost to print each program

= $5 - $2

= $3

b)Average cost per program = cost to print each program - amount got for sending it for recycling

= $2 - $0.10

= $1.90

c) Service level = Cost of underestimating demand ÷ (Cost of underestimating demand + Average cost per program)

= $3 ÷ ($3 + $1.90)

= 0.6122

So, Z is 0.3005

Therefore number of program ordered = 50,000 + 0.3005 × 5,000

= 51,502.5

= 51,503

d) Stock out risk = 1 - Service level

= 1 - 0.6122

= 0.3878

We simply applied the above formulas

8 0

2 years ago

In dangerous professions like law enforcement and construction, women are ______.

Ksju [112]

In dangerous professions like law enforcement and construction, women are respected. Since these jobs are dangerous, many women are not often interested in working in these career fields. Due to the smaller number of women who will work in the career fields, those who do are highly respected by their peers.

7 0

1 year ago

Rather than acquire an existing textile manufacturer in Jakarta, FauxFabric Inc. chose to establish new operations in Indonesia.

Arisa [49]

Answer: (A) Greenfield investment

Explanation:

The greenfield investment is one of the type of FDI ( Foreign direct investment) that helps in constructing the various types of new production facilities in an organization.

The main objective of the greenfield investment process is to making the manage the investor control process and also form different types of opportunities for managing the partnerships in the market.

According to the given question, the Greenfield investment process is helps in establishing the various types of new operation in Indonesia and it is the form of foreign direct investment.

Therefore, Option (A) is correct answer.

7 0

1 year ago

Suppose that, for every 1-percentage-point decline of the discount rate, commercial banks collectively borrow an additional $2 b

almond37 [142]

Explanation:

Decline by $0.5 billion and the money supply will decline by $2.5 billion.

4 0

2 years ago

Lakeview Apartments is an 800-unit apartment complex. When the apartments are 90% occupied, monthly operating costs total $ 22

Harman [31]

Answer:

$204,080

Explanation:

The computation of operating cost is shown below:-

operating cost if occupy 55%

Cost on (800 × 90%)

= 720 units is $220,040

Cost on (800 × 80%)

= 640 Units is $215,480

Variable cost per unit = Changes in total cost ÷ High activity-Low activity

= ($220,040 - $$215,480) ÷ (720 - 640)

= 4,560 ÷ 80

= 57 per unit

Fixed cost = Total cost - Variable cost

= $220,040 - (720 × 57)

= $179,000

Cost equation:

Total cost = Fixed cost + Variable cost per unit

Y = $179,000 + 57X

Y = $1790,00 + (57 × 440)

Y = $204,080

3 0

2 years ago