Explain why adverse conditions within one bond market (such as a particular country) commonly spread to other bond markets.
Lets take an example. Suppose an investor from country A has invested in the debt market of country B. And suppose some unfavorable events happen in country B and it's bond market starts to collapse. Country B's borrowers will start defaulting on its loan which means investors from country A will suffer. Also, country A's people will start defaulting on their loans because they don't have funds to payback their debt as they have lost their investment in country B. This way adverse conditions within one bond market (such as a particular country) commonly spread to other bond markets.
Explain why adverse conditions within one bond market (such as a particular country) commonly spread to...
Use the government bond market and corporate bond market to show why the credit spread (defined as corporate bonds yields minus government bonds yields) would increase when financial risk becomes higher.
Briefly explain why additives (such as NHS) are commonly employed in amide bond formation.
FINANCE ECONOMICS 5. (8 points) Define Adverse Selection. Explain why adverse selection can be problematic in the following insurance markets. (What does the insured know that the insurer doesn’t know?) Life Insurance Car Insurance Health Insurance
Explain why α-helices are most commonly observed in transmembrane protein sequences when the distance from one side of a membrane to the other can be spanned by significantly fewer amino acids in a β-strand conformation. Match the items in the left column to the appropriate blanks in the sentences on the right. prevents within a The structure of an a-helix promotes stretch of amino acids, and at the same time contiguous interactions with other important molecules involved in in the...
Explain why α-helices are most commonly observed in transmembrane protein sequences when the distance from one side of a membrane to the other can be spanned by significantly fewer amino acids in a β-strand conformation. Match the items in the left column to the appropriate blanks in the sentences on the right. noncontiguous The structure of an a-helix promotes within a stretch of amino acids, contiguous and at the same time interactions with other important molecules involved in in the...
Because there are country-to-country differences in buyer tastes, income levels, distribution channels, competitive conditions, and other market-related factors that impact a company's strategy choices • a company must wisely and carefully tailor its strategy in each country to the market and competitive circumstances prevailing in each country where it elects to compete trying to pursue much the same competitive approach in each country is a big mistake. it is virtually impossible for a company to create a sizable profit sanctuary...
Why are financial markets (the bond market, the stock market, and the foreign exchange market) important to the economy?
Explain why a technological improvement in the production of one good means that a country can now produce more of other goods than it did previously.
please hekp and show work! other? Explain. 2. The domestic conditions for the lead-acid batteries for country A and country B are as follows: Country A: P 3600-0.040 Country B: P 1300-0.012Q P 400 + 0.04Q P = 100 + 0.012Q 1) Suppose country A and country B engage in free trade based on their comparative advantage The world price is $1,000. Graphically show the international market of lead-acid batteries. Which country gains more from trade and specialization? 2) The...
Explain why there is an active market in options on US Treasury Bond futures but not in options on US Treasury bonds.