Bonds with higher liquidity must offer higher interest rates in the market, because such investments can be easily converted into cash on short notice at or near the amounts originally invested.
Answer the following statement true (T) or false (F)
False
Bonds with higher liquidity offer low liquidity premium because they can be easily converted into cash in the market. So, they offer lower interest rates compared to bonds with lower liquidity. See 5-2: Determinants of Market Interest Rates
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Donald Yates purchased 400 shares of Adco Mutual Fund for an offer price of $3.28. He later sold the shares at a net asset value of $5.16 per share. During the time Donald owned the shares, Adco paid a dividend of $.23 three times. What was Donald's return on his investment? (Round to the nearest tenth of a percent)
What will be an ideal response?
Stiller Company owns a machine that was bought on January 2, 2011, for $376,000 . The machine was estimated to have a useful life of five years and a salvage value of $24,000 . Stiller uses the sum-of-the-years'-digits method of depreciation. At the beginning of 2014, Stiller determined that the useful life of the machine should have been four years and the salvage value $35,200 . For the year
2014, Stiller should record depreciation expense on this machine of a. $19,200. b. $44,400. c. $59,200. d. $70,400.
When FTA members add shared external tariffs to their agreement, they have formed a
A. trade conglomerate. B. customs union. C. duties agreement. D. free trade association, such as NAFTA.
"I really admire Joel, our team leader," said Jami. "Our team has tough goals to accomplish, and Joel doesn't just supervise us, he
A. serves as an advocate." B. serves as a resource." C. oversees our work." D. will evaluate the final product." E. does real work."