Homework Answers
Answer : TRUE
CONTRACT rate of interest is the rate that is mentioned in the contract between a borrower and lender that a borrower is willing to pay and lenders are willing to accept for a particular bond and it's it'k risk level.
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The contract rate of interest is the rate that borrowers are willing to pay and lenders...
When interest rates increase this is: a. Bad for lenders and borrowers (incorrect) b. Good for lenders but bad for borrowers c. Good for borrowers but bad for lenders d. Good for lenders and borrowers...
When interest rates increase this is: a. Bad for lenders and borrowers (incorrect) b. Good for lenders but bad for borrowers c. Good for borrowers but bad for lenders d. Good for lenders and borrowers
assume that there is a fixed rate of interest on contracts for borrowers and lenders. if...
assume that there is a fixed rate of interest on contracts for borrowers and lenders. if unexpected inflation occurs in the economy, then
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders...
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. not part of either parties' assets or liabilities until the loans are repaid liabilities to both the lenders and the borrowers. Financial intermediaries 2 Multiple Choice 2.94 points O can be banks, but not all financial...
21. The cycle of money explains the relationship between savers, borrowers and financial institutions (lenders) a....
21. The cycle of money explains the relationship between savers, borrowers and financial institutions (lenders) a. True b. False
Lenders want to make sure borrowers are what? Have enough income to repay the loan Are...
Lenders want to make sure borrowers are what? Have enough income to repay the loan Are able to pay back a loan All of the answers are correct Are willing to pay back a loan Have enough assets to cover the debt a o Question 4 at should Other than canding your wallet and improving your personal relationships fancial planning ultimately help you achieve Career This term refers to a change (increase) in an asset's value, Debit Positive Income Up...
Determine if each statement is true or false. True False Answer Bank Borrowers gain when inflation...
Determine if each statement is true or false. True False Answer Bank Borrowers gain when inflation is lower than expected, If inflation is higher than the nominal interest rate, the real interest rate is negative Loan contracts specify the nominal interest rate, Real interest rates will never go negative. Lenders gain when inflation is lower than expected,
Evaluate the following statement: "A higher interest rate will cause the borrowers to increase their borrowings...
Evaluate the following statement: "A higher interest rate will cause the borrowers to increase their borrowings and will cause lenders to increase their lending." Ideal answer is one paragraph long and includes the necessary graphs.
12. Why would lenders be less willing to lend money in an economic downturn? 13. What...
12. Why would lenders be less willing to lend money in an economic downturn? 13. What is the difference between fixed and variable rate interest rates? 14. What is the relationship between risk and return? How do we calculate this relationship?
Q.222 The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The...
Q.222 The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The interest rate charged to BBB corporate borrowers is 8.8% for five year bonds. The differences between these two rates of interest can best be explained by the following factors. a Inflation and Maturity Risk b Maturity Risk and Default Risk c Default Risk and Liquidity Risk d Liquidity Risk and Inflation e Inflation and Default Risk Q.288Â Extending the time which a firm takes...
on the price of a purchaser should be willing to pay for the given bond assume...
on the price of a purchaser should be willing to pay for the given bond assume that coupon interest is paid twice a year $20,000 bond with a coupon rate of 6% that matures a 9 years current interest rate is 3% the purchaser should be willing to pay?
Loans made between borrowers and lenders are 1 Multiple Choice 84 nts liabilities to the lenders and assets to the borrowers since the borrower obtains the funds. assets to the lenders and liabilities of the borrowers since the promises are made to the lenders. not part of either parties' assets or liabilities until the loans are repaid liabilities to both the lenders and the borrowers. Financial intermediaries 2 Multiple Choice 2.94 points O can be banks, but not all financial...
21. The cycle of money explains the relationship between savers, borrowers and financial institutions (lenders) a. True b. False
Lenders want to make sure borrowers are what? Have enough income to repay the loan Are able to pay back a loan All of the answers are correct Are willing to pay back a loan Have enough assets to cover the debt a o Question 4 at should Other than canding your wallet and improving your personal relationships fancial planning ultimately help you achieve Career This term refers to a change (increase) in an asset's value, Debit Positive Income Up...
Determine if each statement is true or false. True False Answer Bank Borrowers gain when inflation is lower than expected, If inflation is higher than the nominal interest rate, the real interest rate is negative Loan contracts specify the nominal interest rate, Real interest rates will never go negative. Lenders gain when inflation is lower than expected,
12. Why would lenders be less willing to lend money in an economic downturn? 13. What is the difference between fixed and variable rate interest rates? 14. What is the relationship between risk and return? How do we calculate this relationship?
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