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.
Consider a huge group of identically smart and strong industrious workers. All else identical, Adam Smith would predict such that the lowest average wages would be earned through the workers who were in the work that: (1) had the leas
What does financial leverage specify? And also states its limitations?
Describe the equation of a linear relationship?
Give a brief introduction of the term Cost of retained earnings?
Suppositions underpinning simple production possibilities frontier models don’t comprise a need that: (i) Net resources are fixed. (ii) All resources are efficiently employed. (iii) Technology is steady. (iv) Resource owners are paid according t
Evaluate and explain the statements: “Market is its own guardian implies that there really is an invisible hand or taskmaster that watches over the decision makers in the marketplace”
What happens in the product markets?
What is the basic principle of comparative advantage?
Explain the law of supply. Why does the supply curve slope upward?
Explain the impact of external costs and external benefits on resource allocation
18,76,764
1932737 Asked
3,689
Active Tutors
1447653
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!