Interest Rate Reinvestment Risk
Explain the term Interest Rate Reinvestment Risk in detail?
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Interest Rate Reinvestment Risk - The YTM computation supposes that the investor reinvests all coupons obtained from a bond at a rate equivalent to the evaluated YTM on that bond, thus earning interest on interest over the life of bond at evaluated YTM. In effect, this computation supposes that the reinvestment rate is the yield to maturity. When the investor spends the coupons, or reinvests them at a rate distinct from the supposed reinvestment rate, the realized yield which will really be earned at the termination of the investment in the bond will vary from the promised YTM. And, actually coupons nearly always will be reinvested at rates higher or lower than the evaluated YTM, resultant in a realized yield which varies from the promised yield. This provides rise to reinvestment rate risk.
The only supply curve which has price elasticity which varies as the price of output increases is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D. Q : Potential advantage offer by Oligopolies Oligopolies offer a potential advantage to society since them: (w) may be capable to amass the huge resources required for modern research and growth. (x) tend to be more socially responsible than small firms. (y) typically maximize long run quite tha
The only supply curve which has price elasticity which varies as the price of output increases is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D.
Oligopolies offer a potential advantage to society since them: (w) may be capable to amass the huge resources required for modern research and growth. (x) tend to be more socially responsible than small firms. (y) typically maximize long run quite tha
At market price P0, this purely competitive industry’s characteristic firms will earn: (i) positive economic profit. (ii) negative economic profit. (iii) zero economic profit. (iv) negative accounting profit. (v) important dividends f
Assume that the domestic demand for television sets is explained by Q = 40,000 − 180P and that the supply is provided by Q = 20P. When televisions can be freely imported at a price of $160, then how many televisions would be generated in the domestic market? By
Assets turn into less desirable to prospective financial investors while: (w) they become more liquid. (x) interest rates increase. (y) their prices go up. (z) default risks decrease. How can I solve my Eco
Assets turn into less desirable to prospective financial investors while: (w) they become more liquid. (x) interest rates increase. (y) their prices go up. (z) default risks decrease.
How can I solve my Eco
When the number of textbooks sold falls/drops 10 percent whenever college tuitions double, textbooks and college enrollments are _____ goods and their cross-elasticity coefficient is mainly _____. (i) Superior; 5.0. (ii) Inferior; 10.0. (i
Provide the solution of this question. The GDP is the: A) monetary value of all final goods and services produced within a nation in a particular year. B) national income minus all nonincome charges against output. C) monetary value of all economic resources used in p
Describe properties of the production possibilities curve.
When the U.S. price elasticity of demand for gasoline is 1.0, the price elasticity of demand for gas sold through one of several gas stations along a busy highway: (w) less than 1.0. (x) 1.0. (y) greater than 1.0. (z) zero. Q : Operations of constant cost industries Purely competitive industries operating under circumstances of constant cost have long-run supply curves which are: (w) horizontal. (x) upward sloping. (y) downward sloping. (z) equal to LRATC for every firm. Can a
When the U.S. price elasticity of demand for gasoline is 1.0, the price elasticity of demand for gas sold through one of several gas stations along a busy highway: (w) less than 1.0. (x) 1.0. (y) greater than 1.0. (z) zero.
Purely competitive industries operating under circumstances of constant cost have long-run supply curves which are: (w) horizontal. (x) upward sloping. (y) downward sloping. (z) equal to LRATC for every firm. Can a
Purely competitive industries operating under circumstances of constant cost have long-run supply curves which are: (w) horizontal. (x) upward sloping. (y) downward sloping. (z) equal to LRATC for every firm.
Can a
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