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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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What is one reason that could explain why some unethical behavior goes<br> unreported?

Vikki [24]

Answer:

Well some people may be threatened by the person who is engaging in unethical behavior or some are just timid and keep to themselves, and just tolerate the unethical behavior, in order to not create conflict or not make enemies within the workplace. But either way we should always report unethical behaviors if we witness it, because if you do not take action it can create an atmosphere where misconduct spreads like wildfire.

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2 years ago

Consider an 8% coupon bond selling for $953.10 with three years until maturity making annual coupon payments. the interest rates

Andreyy89

Answer:

a) YTM = 9.8%

b) realized compound yield is 9.9%

Explanation:

a) PMT = 80

par value FV = 1000

coupon rate = 8%

curent price PV = 953.1

years to maturity n = 3

Yield to maturity (YTM) = $\frac{PMT+(FV-PV)/n}{(FV+PV)/2}$ = $\frac{80+(1000-953.1)/3}{(1000+953.1)/2}$ = 9.8%

b) r2 = 10% = 100%+10%=1.1

r3 = 12% = 100%+12%=1.12

Realized compound yield:First, find the future value (FV. of reinvested coupons and principal

FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16

let a be the rate that makes the future value $1268.16

953.1(1+y)³ =$1268.16

(1+y)³=1.33

1+y=1.099

y = 0.099 = 9.9%

5 0

2 years ago

The GoT cups are a fast seller and you need to ensure that you have enough rolls of paper to fulfill demand. The first stage in

jarptica [38.1K]

Answer:

EOQ = 414 rolls

Explanation:

In order to calculate the number of orders to minimize the cost, we should calculate that by using the Economic order quantity model.

DATA

Holding cost = $1.75/unit

Annual demand = 500 rolls x 12 = 6000 rolls

Ordering cost = $25

Formula

EOQ = $\sqrt{\frac{2Cod}{Ch} }$

Where

Co = ordering cost

D = Annual demand

Ch = Holding cost

Solution

EOQ = $\sqrt{\frac{2(6000)(25)}{1.75} }$

EOQ = $\sqrt{\frac{300000}{1.75} }$

EOQ = 414 rolls

They should order 414 rolls to minimize the cost.

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Rudik [331]

Freedom of ownership is part of the government and the public sector business environment.

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2 years ago

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