Question 14 The rate of return on a bond is the Federal funds rate. Discount rate.

Q: What is NOT considered as a disadvantage of investing in corporate bonds?    can be defaulted on…

A: The corporate bonds are issued to raise fund. Such bonds are considered fixed income securities.

Q: Interest rate risk; a. is the risk that a bond's coupon rate may change over time b. is lesser for…

A: In a market, interest rate works as the price of a specfiic investment as it is the cost for a…

Q: Describe five ways that will ensure the properly used of accumulated savings by the government.

A: Governments have a vested interest in influencing the country's economic savings and investments.…

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: Here is another realistic scenario. Consider the above graph that shows demand for excess reserves…

A: The federal reserve system is the central bank of the U.S. It is often known as the fed that…

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: Government spending provided by passage of appropriations bills that set aside funds for specific…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A bond's yield is a periodic fixed payment made to a bondholder expressed as a percent of its face…

A: Bonds are fixed-income securities that simulate loans made by investors to borrowers. In a contract…

Q: 11) Devin purchased a $3500 bond paying 4.5% annual simple interest after graduating from college.…

A: Simple Interest:Simple interest is a method of calculating the interest rate on a loan or investment…

Q: Niall O’Connor earns an income of $80,000, pays $30,000 in taxes, and receives $6,000 in transfer…

A: Income is the source of livelihood for poor people to get their basic needs like food, shelter, and…

Q: Ketchup Corporation is currently trading at $40 per share. There are 0.5 million shares outstanding.…

A: When you invest money in the stock market than it is possible that you may get extra ordinary profit…

Q: Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase.…

A: Given : Coupon rate=9.7% market price=79.75 Time period=23 days Commission per bond=$9.55 Bonds…

Q: If you go to an Islamic bank and ask for financing for following purposes, which financial product…

A: The Islamic banking system is different from the rest of the world's banking system. It prohibits…

Q: WHich are two main types of debt instruments issued by the Australian Government?

A: Debt is an obligation that legally binds the borrower to pay back the lender the principal amount…

Q: Here is another realistic scenario. Consider the above graph that shows demand for excess reserves…

A: The central banks' foreign reserves are preserved in order to regulate the exchange rate by building…

Q: Bank Three has equity = $250 million, return on equity (ROE) = 15%, interest expense = $105 million,…

A: Equity= $250 million Interest expense = $105 million Provision for loan loss (P) = $30 million…

Q: 1.Which of these is not a tax-advantaged retirement account? Question options:…

A: Hi, thank you for the question. A per our Honor code, we are allowed to attempt only first question.…

Q: Financial Sector Reforms in Ghana from 2007 to 2020 Impact on the reforms of the economy

A: Empirical data suggest that the economic growth in the African nation of Ghana has been an…

Q: Kuwait was recently able to reduce its budget deficit. What will be the impact of this event on bond…

A: Budget deficit: ​A spending deficiency is when spending surpasses pay. The term applies to…

Q: Using a supply and demand diagram, with price and yield on opposite vertical axes, briefly explain…

A: Here we have to analyse the impact on government bond market given the situations.A financial market…

Q: You have 2 accounts: Account A has a $700 balance and a $1000 credit limit. Account B has a $150…

A: Debt to credit ratio, also known as the credit utilization rate is defined as the amount of…

Q: The market consensus is that U.S. inflation will remain low, averaging 1% over the next 3 years.…

A: Inflation is the increase in the average price level of a basket of goods and services.

Q: QUESTION 1 a) Under what conditions that a discount bond has a negative nominal interest rate? Is it…

A: Nominal interest rate is given as the sum of real interest rate and inflation rate. The Nominal…

Q: What are I-bonds? Also explain inflation-adjusted interest rate

A: Inflation can be defined as an increase in the average price of the product in a country's market.…

Q: Indicate, describe and analyse areas of tax laws that should be considered in a financial plan. Give…

A: With the financial planning process, tax regulations also greatly affect the choice of investments,…

Q: Financial institutions Multiple Choice O promote innovation and new products. collect fees from…

A: Financial institutions are organizations or businesses that provide financial services, such as…

Q: Which among the following is not a liquid asset   A)Cash deposited in a bank B)Stock C)Bills…

A: Non-Liquid Asset: Non-liquid assets are those assets that can not be easily converted into cash. For…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: