True or false Over the long term, US Treasuries have had a higher return than an...
True or false
Over the long term, US Treasuries have had a higher return than an index fund of investment grade bonds.
Homework Answers
This statement is is true.
Over the long term US treasury bonds have generated a return which is slightly higher than Index funds of Investment grade bonds. The excess return generated may be in the range of 100 to 150 basis points but if you compare the risk and return, treasury securities outperform the Investment grade bond Index funds.
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True or false
Over the long term, US Treasuries have had a higher return than
an...
Why do long term securities have a higher return than short term securities ?
Why do long term securities have a higher return than short term securities ?
True or False? 1) PepsiCo has a higher debt ratio than Chevron (use the latest financial...
True or False? 1) PepsiCo has a higher debt ratio than Chevron (use the latest financial statements on Yahoo). 2) Apple has a higher profit margin than Gilead Science (use the latest financial statements on Yahoo). 3) Even if a firm's cash flow projections indicate that it will soon be unable to meet its interest payments, a bankruptcy case cannot begin until the firm defaults on a scheduled payment. 4) When a firm increases its common stock dividend, it must...
Which of the following is NOT true: Yields on long-term bonds are always higher than short-term...
Which of the following is NOT true: Yields on long-term bonds are always higher than short-term bonds. The yield curve charts the annual interest rates paid on bonds of various maturities. None of these. Investors compare the yields of securities of various maturities to understand the prospects for future market growth and inflation. The slope of the yield-curve reflects investor sentiment about the overall health of the economy.
In general, the REPO rate is higher than FED FUND rate. True or False True False...
In general, the REPO rate is higher than FED FUND rate. True or False True False uces
Investment grade rated countries (IG) have, typically, higher yields than high yield, HY, (AKA junk bonds...
Investment grade rated countries (IG) have, typically, higher yields than high yield, HY, (AKA junk bonds or speculative grade), since HY bonds' default probability is Lower than the IG's. Group of answer choices True False
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph...
The cost of long-term borrowing is usually higher than the cost of short-term borrowing. The graph that shows the relationship between maturity and interest rates for U.S. Government’s borrowings (Treasuries) is called “term structure of the interest rates” or “the yield curve”. Shape of the yield curve is often used by economists to forecast future status of the economy 1. Discuss why long-term rates are usually higher than short-term rates (upward yield curve) 2. Discuss under what economic conditions long-term...
true or false 6. profit margin = net income/ sales 7. debt ratio = long term...
true or false 6. profit margin = net income/ sales 7. debt ratio = long term debt / ( long term debt + equity ) 8. equity investors are satisfied with the performance of a company when the cost of equity is higher than the return on equity, because this shows good risk management 9. in a financial lease, when comparing the PV of leasing and the PV of buying, we ignore maintenance and insurance cost because both the lessee...
Assume that the inflation rate during the last year was 2.87 percent. US long-term bonds had...
Assume that the inflation rate during the last year was 2.87 percent. US long-term bonds had the nominal rates of return of 3.81 percent. What is the real rate of return for a US long-term bond? Round the answer to two decimal places in percentage form.
true or false: the standard error of estimate of the expected return is higher than the standard deviation of returns.
true or false: the standard error of estimate of the expected return is higher than the standard deviation of returns.
Which of the statements (I-IV) is (are) most likely FALSE: I. When shorter maturity treasuries are...
Which of the statements (I-IV) is (are) most likely FALSE: I. When shorter maturity treasuries are yielding less than longer maturity treasuries, the yield curve is considered to be normal II. When shorter maturity treasuries start to yield more than longer maturity treasuries, the bond market is expecting the economy’s growth rate to slow, and the stock market usually falls in value shortly thereafter III. When shorter maturity treasuries are yielding more than longer maturity treasuries, it would be a...
In general, the REPO rate is higher than FED FUND rate. True or False True False uces
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