HOMEWORK 1 - MONEY AND BANKING * uestion 1 4 out of 4 points Correct The periodic payments on equity securities are called Answer Selected Answer: dividends. Correct Answer: dividends. * Question 2 0 out of 4 points Incorrect In the United States, the biggest issuers of debt securities are Answer Selected Answer: households. Correct Answer: financial intermediaries. * Question 3 4 out of 4 points Correct In the United States, the biggest issuers of equity securities are Answer Selected Answer: …show more content…
Which investment provides the highest after-tax return? Investment A: interest rate 10 percent, tax rate 40 percent of interest income. Investment B: interest rate 8 percent, tax rate 25 percent of interest income. Investment C: interest rate 6.5 percent, tax rate 0 percent. Answer Selected Answer: Investments A and B have the same after-tax return, which is greater than that of investment C. Correct Answer: Investment C. * Question 13 0 out of 4 points Incorrect Consider the following four debt securities, which are identical in every characteristic except as noted: W: A corporate bond rated AAA X: A corporate bond rate BBB Y: A corporate bond rated AAA with a shorter time to maturity than bonds W and X Z: A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or Y Which of the following is the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest? Answer Selected Answer: W, X, Z, Y Correct Answer: X, W, Y, Z * Question
This course was designed to meet the unique needs of students like you who are
1) What theological concerns prompted Martin Luther's challenge of the authority of the Catholic Church? What specific reforms did he advocate?
1. Choose a small section of the narrative of the plaques in Exodus 7-12, and identify the parts of the passage that you would attribute to J, E, and P. What characteristic phrases and themes of each source occur in the passage?
2. Describe the Chinese concept of the ying and yang as a unifying explanation for the universe.
| C. Occasional day by day, east to west motion of the planets relative to the stars
2. The study of ethics (foundational underpinnings of the course and topic) This is hard to itemize without giving
Cultural influences that are learned from birth to about age 5. These can be morals, value of education, work ethic, etc.
(b) The value of a growing tax shield is greater than the value of a constant tax shield.
So if we start to compare the separate bonds that are presented by these two powerhouse companies we can see that they both have a maturity date of 30 years for a face value of $1,000 and the coupon type is fixed. The coupon rate is less than the current interest rate which means a buyer may want to pay less for that bond. However there are some differences such as the issue size of the two bonds. Apple
| The XYZ Corporation has $1000,000 which it plans to invest in marketable securities. The corporation is choosing between the following three equally risky securities: Greenville County tax-free municipal bonds yielding 7 percent; AB corp. bonds yielding 11.5 percent; XZ corp. preferred stock with a dividend yield of 10
Corporate bonds are one of the main products of the fixed income market. These instruments have similar features that of a bank loan, except that they can be transferrable from one lender (investor) to another, and can be traded in market which is known as corporate bond market. Trading is performed either on price or yield basis. Bond usually trades either at premium or at discount to its face value. The quality of the bond is derived from creditworthiness of the company or default risk. Based on potential default risk, bonds are evaluated on credit rating
) A bond issuer’s aggregate ratings provide investors with an estimate of the default risk associated with a particular issuer and or bond issue. The most well-known bond-rating agencies are Moody’s Investor Services, Standard and Poor’s (S&P), and Fitch. These ratings agencies mostly rates municipal debt issues (Wyss, n d).
Work individually, and/or with others, as both a team member and group leader, to complete tasks and evaluate own and others’ performance using given parameters.
c) Bond: for meeting long term requirements firms or governments issues bond certificates maturing from 5 to 30 years. Bonds are of two types, floating bonds and fixed rate bonds. The interest rate on floating bond
4. There is an inverse relationship between bond ratings and the required return on a bond; The required return is lowest for AAA