Why is there usually a positive relationship between the time a bond will mature (how long the

Question:

Why is there usually a positive relationship between the time a bond will mature (how long the investor has to wait to get her money) and the interest rate on that bond?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Issues in Economics Today

ISBN: 978-1259746390

8th edition

Authors: Robert C. Guell

See More Books

Question Posted: Feb 11, 2020 08:10 AM

See More Questions

Which of the following observations appear to indicate market inefficiency? Explain whether the observation appears to contradict the weak, semi-strong, or strong form of the efficient-market...
The following strategic objectives have been derived from a strategy that seeks to improve asset utilization by more careful development and use of its human assets and internal processes: a....
Which of the following observations appear to indicate market inefficiency? Explain whether the observation appears to contradict the weak, semistrong, or strong form of the efficient-market...
In Exercises find the derivative of the function. y = x(x + 1)
In what circumstances must assumptions be made in order to assign a cost to inventory items when they are sold?
Is it possible for an employee to have personal values that are inconsistent with the values of the organization? If so, how is this inconsistency likely to affect the employees behaviour and...
Explain the act of deliberation.
1. How did the previous lack of integration impact the District of Columbia Department of Human Services ability to serve its clients? 2. With respect to the challenges involved in implementing...
Zoe Corporation has the following information for the month of March: \ table [ [ Purchases , $ 9 2 , 0 0 0
How would your answer in question #5 change if the interest rate was 5 percent? Question-5 Suppose a firm has $10 million in debt that it expects to hold in perpetuity. It the interest rate is 7...
Why is it that $400 per month paid over five years will not be enough to buy a $24,000 car?
Of the reasons that the aggregate demand curve and the demand curve are downward sloping, each has one labeled the real balance effect. How are they different?
Helmut purchases 100 shares of stock in Caisson Corporation for $1,000 in year 1. On December 1 of year 2, he purchases an additional 100 shares in the company for $1,500. On December 28 of year 2,...
After reading or watching, https://smallbusiness.chron.com/internal-analysis-important-80513.html https://www.indeed.com/career-advice/career-development/internal-analysis...
At the Business Level there are a couple main strategies that companies use- Cost Leadership and Differentiation. What is the difference between them? Share some examples of companies or specific...
https://youtu.be/c_Eutci7ack After watching the video, what are your thoughts on Power? Would you want to have this Power ? Why would you not want this Power? If you are a manager or want to be a...
Find anti derivative of ( 2 t - 4 + 3 ^ ( 1 / 2 ) ) / t ^ ( 1 / 2 )
How Adidas is using creative narratives to build brand equity Adidas' outdoor division is drawing on the expertise of its wider athletic business while at the same time flexing its creative muscle to...
Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In exchange, Alfonso paid $198,000 in cash and issued 100,000 shares of its own $1 par value common...
Burberrys competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?
The PDQ Partnership earned ordinary income of $150,000 in 2017. The partnership has three equal partners, Pete, Donald, and Quint. Quint, who is single, uses the standard deduction, and has other...
Why is a thorough knowledge of sources of tax law so important for a professional person who works in the tax area?
The Internal Revenue Code is the most authoritative source of income tax law. In trying to resolve an income tax question, however, a tax researcher also consults administrative rulings (Income Tax...
Williams Pharmaceuticals issued 150 million shares of its $1 par common stock at $15 per share in 2014. They had the following transactions during 2014: Jun. 27: Williams Pharmaceuticals reacquired...
Adjusting entries ABC. Co purchased 600 of office supplies on account on October 15th. On December 31st, 150 of office supplies remain on hand. Prepare the journal entries to record the October 15th...
Calculate the present value of cash flows, 1500 in the year 1 then grows at 2% every year, using 10% discount rate. Round and write up to two decimals (e.g., 100.00). No characters including comma...

Why is there usually a positive relationship between the time a bond will mature (how long the

Question:

Step by Step Answer:

Long term bonds are most sensitive to interest rate changes The reason lies in the fixedincome natur...View the full answer

Issues in Economics Today

Students also viewed these Business questions