Lead to rise in the current interest rate on bond

Assignment Help Business Economics
Reference no: EM131001209

Ceteris paribus, which of the following will lead to a rise in the current interest rate on a Bond A?

A) Bond A becomes more liquid than other assets.

B) The prices of alternative assets become more volatile than the price of Bond A.

C) The interest rate on Bond A is expected to fall in the near future.

D) None of the above.

Reference no: EM131001209

Questions Cloud

Correlations between stock market prices and treasury bonds : Discuss the correlations between US stock market prices and the prices of US Treasury Bonds. Some times stock prices and Treasury bond prices move in the same direction. Why? Sometimes they move in opposite directions...why would that be?
Show that the adjustment coefficient is log : Show that the adjustment coefficient is log(3/2). If Un denotes the amount you have at time n, show that Un is not a martingale. At time 20 you have a total of 4 units. What is E((2/3)U50 )?
Utility granted by spending holidays domestically : Suppose the utility granted by spending holidays domestically D and holidays in foreign countries F is represented by the utility function u(D,F)=10D*F. You have a budget of 4000 US-Dollars and a domestic holiday costs you 100 US-Dollars per day and ..
Developed as a global application or as a local application : If you were a manager in a company that operates in many countries, what criteria would you use to determine whether an application should be developed as a global application or as a local application?
Lead to rise in the current interest rate on bond : Ceteris paribus, which of the following will lead to a rise in the current interest rate on a Bond A?
Face-value treasury note at market price : Suppose you bought a 2-year, 2%-coupon-rate, $100-face-value Treasury note at a market price of $98. The yield to maturity on this note is _____%? Please show all work.
Capture demand in the monopolistically competitive : One of these firms is considering opening up a new product line, in a market in which it would be the only firm. So, adjusting the notation to now capture demand in the monopolistically competitive industry with Q1(p1) = 140 − p1, and the demand it w..
Summarize the article : Summarize the article. Article- Conceptualising business risk culture: a study of risk thinking and practice in contemporary dynamic organisations
What are the cash payments for interest and for taxes : Is the direct or indirect method used to report operating activities? What is the largest adjustment to net income in reconciling net income and cash flows from operations in the most recent year?

Reviews

Write a Review

Business Economics Questions & Answers

  If the total cost of producing two pounds of cheese

If the total cost of producing 2 pounds of cheese is $6 and the total cost of producing 4 pounds of cheese is $8, then:

  What is the inflation premium

You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that one year T-bills are currently earning 3.25 percent. What is the inflation premium?

  Conferences or workshops

Discuss at least three items that are common pitfalls when setting up a budget. Discuss how you will plan for opportunities to attend conferences or workshops that are important to your marketability but the expenses are not covered by your employer

  How might our hospital system be different today had history

Evaluate the impact of one of the following? The development of the modern health insurance industry, Medicare and Medicaid, or the Hill-Burton Act of 1946? On the development of the hospital system. How might our hospital system be different today h..

  Explain the practical effect of price controls on product

Explain the practical effect of price controls on product and service availability, quality and true cost. What is the full impact of rent controls? On whose behalf are they imposed? Who are the winners and who are the losers? What is the impact of p..

  Keep the money market in equilibrium

In a third world country, the central bank wants to reduce the inflation rate by 5%. The current money supply is $2.0 trillion and the goal is to have equilibrium in the money market (Ms=Md). What should be the new target interest rate to reduce the ..

  Explain price consumption curve of a normal good

Explain and illustrate graphically relationship between price consumption curve of a normal good and a consumer's demand curve.

  Describe the equilibrium price and quantity

Describe the equilibrium price and quantity, producer surplus and consumer surplus.

  Elucidate how should the manager adjust input usage

A Publishing company uses 400 printers and 200 printing presses to produce books. Elucidate how should the manager adjust input usage.

  Q1 explain the essential distinctions among the

q1. explain the essential distinctions among the stages-of-growth theory of development the structural change models of

  Q1 a plant has a capacity of 4100 hydraulic pumps per month

q1. a plant has a capacity of 4100 hydraulic pumps per month. the fixed cost is 504000 per month. the variable cost is

  Idea of drg-based prospective payment mechanism

Discuss the idea of DRG-based prospective payment mechanism for hospitals. Discuss the potential effects of DRG payment on quantity of services produced by the hospitals, composition of different types of services offered, incentives for adoption of ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd