You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long term and you know that Bluestone's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct?
a. The longer term would tend to make the interest rate on the bond issued by Bluestone higher, while the higher risk would tend to make the interest rate lower.
b. The longer term would tend to make the interest rate on the bond issued by Bluestone lower, while the higher risk would tend to make the interest rate higher.
c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Bluestone.
d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Bluestone.
d
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A. the end products of; are not B. the end products of; are C. used up in the process of; are not D. used up in the process of; are
A producer's minimum acceptable price for a particular unit of a good
A. will, for most units produced, equal the maximum that consumers are willing to pay for the good. B. is the same for all units of the good. C. must cover the wages, rent, and interest payments necessary to produce the good but need not include profit. D. equals the marginal cost of producing that particular unit.
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Which of the following is an advantage of an indexed equity mutual fund relative to a managed equity fund?
What will be an ideal response?