What is likely to happen to the price of the bond

Assignment Help Microeconomics
Reference no: EM131021117

Suppose you buy the bond of a large corporation at a time when the inflation rate is very low. If the inflation rate increases during the time you hold the bond, what is likely to happen to the price of the bond?

Reference no: EM131021117

Questions Cloud

What implications does this huge investment : What implications does this huge investment have for Germany's current-account balance in the future?
Cost of equity to an unlevered firm : The Hatfields Corporation is a zero growth firm with an expected EBIT of $250,000 and corporate tax rate of 40 percent. Hatfields uses $1,000,000 of debt financing, and the cost of equity to an unlevered firm in the same risk class is 15%.
Upper management to review implementation results : Outline the control that will be used to monitor progress and allow upper management to review implementation results and spot products/and or services that are not
The u.s. trade deficit is a consequence of the unwillingness : The U.S. trade deficit is a consequence of the unwillingness of the current generation of American taxpayers to pay fully for the goods and services they want from government." Discuss this statement in your word (Minimum 250 words)
What is likely to happen to the price of the bond : Suppose you buy the bond of a large corporation at a time when the inflation rate is very low. If the inflation rate increases during the time you hold the bond, what is likely to happen to the price of the bond?
Summarize the sarbanes-oxley of 2002 : Summarize the Sarbanes-Oxley of 2002 as it relates to U.S. business operations. Explain the governance principles of regulatory compliance requirements related to Sarbanes-Oxley.
Current market price of the stock : McIver's Meals, Inc. currently pays a $2 annual dividend. Investors believe that dividends will grow at 20% next year, 12% annually for the two years after that, and 6% annually thereafter. Assume the required return is 10%. What is the current ma..
What is the most you would be willing to pay : Suppose that eLake, an online auction site, is paying a dividend of $2 per share. You expect this dividend to grow 2 percent per year, and the interest rate is 10 percent. What is the most you would be willing to pay for a share of stock in eLake?..
Theresas flower garden has 750 bonds outstanding that are : Theresa's Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 a share, and 30,000 shares of common stock valued at $56 a share. What weight should be assigned to the commo..

Reviews

Write a Review

Microeconomics Questions & Answers

  Romotional component of marketing mix, personal selling

1- Unlike advertising, which is part of the promotional component of marketing mix, personal selling is considered to be part of the contribution function. True or False? Why? A firm's short term financial forecast provides a projected sales estimate..

  Econ on last job i attached seveal documents but it only

on last job i attached seveal documents but it only posted one. so first job posted and this one for the amount listed

  Free trade is beneficial for the economy

Concluding that because free trade is beneficial for the economy as a whole, it must be beneficial for each individual is an example of the:

  Due to the housing bubble

Due to the housing bubble. Many houses are not selling for much less than their selling price just two to three years ago. There is evidence that homeowners with virtually identical houses tend to ask for more if they paid more for the house. What fa..

  Consider a market where supply and demand

Consider a market where supply and demand are given by QXS = -10 + PX and QXd = 71 - 2PX. Suppose the government imposes a price floor of $33, and agrees to purchase any and all units consumers do not buy at the floor price of $33 per unit.

  Explain how high entry barriers into market will influence

you have been hired as a consultant by your local mayor to look at the various market structures. your role is to

  Analyze the main competitive forces

Analyze the main competitive forces in the your healthcare delivery system in your state, and compare the major factors that influence the fundamental manner in which these competitive forces determine prices, supply and demand, quality of care, c..

  Describe the analysis tools at their disposal to estimate

our company wants to invest in a new technology driven product. it is a significant investment so management wants a

  The current inflation rate

The current inflation rate in Iran is roughly 23% per year (because of economic mismanagement and UN sanctions). How should a prudent Iranian invest a large sum of rials today to preserve/grow its future value?

  Will it increase or decrease

Can anyone tell me if there is a fear of a terrorist attack inside of the Home country, what may happen to the autonomous net exports? Will it increase or decrease?

  Write down the difference between contractionary and

what is the difference between contractionary and expansionary fiscal policies? which is more appropriate today?

  What do you mean by regulatory philosophy

1) Regulatory Philosophy. What do you mean by this? 2) Revenue compliance. What is Intelligence? Why is this distinction important?

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