« previous next »

Author Question: ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures ... (Read 163 times)

dejastew

  • Hero Member
  • *****
  • Posts: 562
on: Jul 10, 2018
ABC company has two bonds outstanding that are the same except for the maturity date. Bond D matures in 4 years, while Bond E matures in 7 years. If the required return changes by 5 percent, then ________.
 
  A) bond D will have a greater change in price
  B) bond E will have a greater change in price
  C) the price of the bonds will be constant
  D) the percentage price change for the bonds will be equal

Question 2

If a manager requires greater return when risk increases, then he is said to be ________.
 
  A) risk-seeking
  B) risk-indifferent
  C) risk-averse
  D) risk-aware


asdfghjkl;

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Polar covalent bonds in water molecules Polar covalent bonds in water molecules
The stability of carbon bonds makes life possible even in extreme environments The stability of carbon bonds makes life possible even in extreme environments
Transdermal patch administration: (b) patch immediately applied to clean, dry, hairless skin and lab Transdermal patch administration: (b) patch immediately applied to clean, dry, hairless skin and lab
This headache remedy was “guaranteed” by the drug company; 1906. This headache remedy was “guaranteed” by the drug company; 1906.
Cleavage of a glycosidic bond by hydrolysis or Phosphorolysis Cleavage of a glycosidic bond by hydrolysis or Phosphorolysis
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Pressure Flow Model Animation

For a complete list of videos, visit our video library