What are the factors determining the changes in interest price and in what way? Analyze on a diagram of demand and supply of bonds.

Q: What is a zero-down home mortgage? What is a huge potential risk with zero-down mortgages?

A: A mortgage refers to a loan used to finance the acquisition or upkeep of real estate, vacant land,…

Q: how often must a nominal rate of 18% be compounded in order to yield 18.81% annually? choices are:…

A: Given that the nominal interest rate is 18%. One need to find the compounded period using which…

Q: 1.Which of the following is not a financial asset? a share of Coca-Cola stock a corporate bond an…

A: Introduction: Financial asset: A financial asset is a liquid asset with a contractual right or…

Q: Create a useful plan for how a firm may raise finantial capital.

A: The objective of this question is to create a plan for a firm to raise financial capital. Financial…

Q: ______________ is a method of measuring the value of a section of the bond

A: In economic, bond market is referred to the place where exchange of bonds take place.

Q: There is a 4-year, 3 percent coupon bond with 3.5 years Duration. If the market interest rate…

A: Given: Time=4 years Bond %=3 Duration=3.5 year Original yield=9% New yield=9.15%

Q: What type of bond is issued by state and local governments? Is there any risk that state and local…

A: An investor issues a bond to a borrower, such as a company or the government.The funds are used to…

Q: Draw the Yield curve for U.S. government bonds as it was on February 5th, 2020. Explain what is a…

A: The yield curve shows the yield to maturity. The yield derived for a maturity period is depicted in…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: Susie works two jobs so she can pay tuition without using loans, helps her sick mother with…

A: The act of allocating resources, often money, with the hope of making a profit or producing income…

Q: The interest rate for a bond is always equal to its yield to maturity

A: The interest rate can be defined as the amount of interest which is measured as a percentage of the…

Q: what are bonds in the top four categories referred to?

A: Bond is generally a loan that is made by a borrower that is the company to an investor. It…

Q: 11. The face value of a bond is $10,000, and the annual coupon payment is $850. What is the coupon…

A: coupon rate is a rate  which is calculated by adding the sum of coupons paid per year and dividing…

Q: How has the COVID-19 pandemic affected the operations/performance of specific financial…

A: Coronavirus has brought the world into a state of crisis. The economy loses its equality and cannot…

Q: How many weeks would it take to increase the debt of a simple discount loan by 114% if the annual…

A: Debt refers to the amount owed for money borrowed. The lender agrees to lend money to the borrower…

Q: True or False: The time value of money describes how compound interest helps money grow over time. O…

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: From a firm’s point of view, how is a bond similar to a bank loan? How are they different?

A: Borrowings are a way by which company gets the finances to do the business operations feasibly. The…

Q: c. Small businesses use these to raise funds for investment. Loan | Stock | Bond d. This is also…

A: Loan: A loan is an agreement between borrower and lender that implies the borrower is borrowing a…

Q: Explain why a mortgage-backed security becomes riskier when the values of the underlying houses…

A: Mortgage-backed securities are more risky. The cost of borrowing is represented by interest…

Q: at is a bond?     A certificate representing a loan from an investor to a corporation or…

A: A bond is a debt instrument that a business or government issues to raise funds, and pays fixed…

Q: Draw the yield curve for u.s. government bonds as it was on february 5th 2020

A: Data for the calculation was taken from country U department of treasury official site, So the yield…

Q: 2. A bond pays 4% interest for four years; has a future value of $1000. Calculate the present value…

A: Present value conveys the current worth of a future series of cash flows based on the specified rate…

Q: Illustrate the relationship between assets and liabilities?

A: Assets are something that a business owns and liability is what a business owe to others. To own…

Q: 5 ways to manage credit risk

A: Credit can also refer to an individual's or a company's creditworthiness or credit history. It…

Q: 1. What is an effective rate of interest?

A: The time value of money is the concept that an amount of money is worth more now than the same…

Q: Assume that you are a wealthy investor, which one do you prefer mutual funds or hedge funds? Why?

A: Mutual fund and multifaceted investments are overseen portfolios worked from pooled assets fully…

Q: Why are bonds somewhat risky to buy, even though they make predetermined payments based on a fixed…

A: Financial economics deals with the financial markets, their operations and functions, and the…

Q: You own a 6%bond and want to sell it in a yearl Di you hope that interest rates rise or fall?…

A: there are a lot of signals where we can say that we have to sell the bond.

Q: Explain how shares of stocks differ from mutual funds.

A: A stock (also referred to as equity) is a security reflecting the ownership of a fraction of a…

Q: Annuity Suppose that you are thinking of buying a car that yields a rental of $5,000 each year for 3…

A: To determine how much you should be willing to pay for the car, we can calculate the present value…

Q: Define what financial instisutions are and give examples to explain your understanding

A: Types of financial institutions include: 1. Depository institutions:  These institutions are deposit…

Q: If junk bonds are called "Junk" Why then would as an investor buy Junk bonds?   Explain your reasons…

A: Junk bonds are bonds which carry a higher default risk than most corporate and government issued…

Q: What are the factors affecting the amount of money paid for the use of borrowed capital or the…

A: In a capital market, organizations raise capital/funds by borrowing money from the market…

Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…

A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…