Illustrate the Risks involved with bonds
Illustrate the Risks involved with bonds?
Expert
Risks involved with bonds include:
a. Capital risk, which means that the market price of a bond can change if market interest rates change and a holder needs to sell a bond before its maturity date. Note that the market price of a bond varies inversely with market interest rates.
b. Risk of unexpected inflation means that the purchasing power of the bond will fall because its interest rate is less than the inflation rate.
How Reciprocal Trade Agreements Act had goal of reducing tariffs?
Illustrate Economics for citizenship?
Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
Explain the statement: “Good economic policy requires good economic theory.”?
Illustrate the term Positive and Normative Economics?
Question: Describe the present economic crisis situation in Europe. Why has it been so difficult for the Europeans to find a solution to this problem? Comment on what implications the crisis may have for the rest of the world i
The main advantage of using EVA is that it is simple to calculate and understand. It uses simple measures like operating profits and cost of capital terms which are widely known and accepted in the financial arena. It helps the managers to assess thei
What do you mean by spillover. Write short note on it?
How can we calculate Price earnings ratio?
Question The Current Account captures international fund flows due to net income on (past) investments, net transfers, and i._______________________________, general
18,76,764
1928304 Asked
3,689
Active Tutors
1427333
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!