subject
Business, 21.11.2019 02:31 gabrielmartinsotr4yl

You currently own $100,000 worth of 1 year bonds and $100,000 worth of 10 year bonds. you believe that interest rates are going to decrease tomorrow. based on your beliefs, to maximize the benefit to you, today you should (ignore the cost of trading the bonds)
a. sell your 1 year bonds and buy an additional $100,000 of the 10 year bonds and expect a capital gain
b. sell your 1 year bonds and buy an additional $100,000 of the 10 year bonds and expect to avoid a capital loss
c. sell your 10 year bonds and buy an additional $100,000 of the 1 year bonds and expect a capital gain
d. sell your 10 year bonds and buy an additional $100,000 of the 1 year bonds and expect to avoid a capital loss

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 15:10
Paddock pools constructed a swimming pool and deck for the jensens' home. paddock installed the wrong trim on the pool. it would cost $2800 to change the trim-one-fifth of the total cost of the pool. the jensens refuse to pay anything for the pool. the paddock's best defense is: (a) duress (b) substanial performance (c)mistake (d) failure of conditions
Answers: 3
question
Business, 22.06.2019 17:40
To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.
Answers: 3
question
Business, 22.06.2019 17:50
What additional information about the numbers used to compute this ratio might be useful in you assess liquidity? (select all that apply) (a) the maturity schedule of current liabilities (b) the average stock price for the industry (c) the average current ratio for the industry (d) the amount of current assets that is concentrated in relatively illiquid inventories
Answers: 3
question
Business, 22.06.2019 19:10
Calculating and interpreting eps information wells fargo reports the following information in its 2015 form 10-k. in millions 2015 2014 wells fargo net income $24,005 $24,168 preferred stock dividends $1,535 $1,347 common stock dividends $7,400 $6,908 average common shares outstanding 5,136.5 5,237.2 diluted average common shares outstanding 5,209.8 5,324.4 determine wells fargo's basic eps for fiscal 2015 and for fiscal 2014. round answers to two decimal places.
Answers: 3
You know the right answer?
You currently own $100,000 worth of 1 year bonds and $100,000 worth of 10 year bonds. you believe th...
Questions
question
History, 17.09.2021 09:20
question
History, 17.09.2021 09:20
question
Mathematics, 17.09.2021 09:30
question
English, 17.09.2021 09:30
Questions on the website: 13722360