Answered

Discover the answers you need at Westonci.ca, a dynamic Q&A platform where knowledge is shared freely by a community of experts. Get quick and reliable solutions to your questions from a community of experienced experts on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows

Sagot :

khuranashilpa76

Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows default risk differences.

The more credit danger related to an enterprise the better the fee of going back presented on its monetary contraptions, and that is reflected in the example given within the query. The T bond has the lowest chance of default due to the fact it's far assured by using the Treasury, so the return is the lowest.

The excellent-rated company bond has the bottom return among company bonds, and the worst-rated pays the best return bonds can be noncallable for a time period, giving a length of constant hobby payments to the customer after which, become callable after that period to allow the company to reset the interest fee at the debt specifically if the marketplace has changed. Noncallable security is a monetary safety that can't be redeemed early by the company besides from the fee of a penalty.

Learn more about The interest rate here:-https://brainly.com/question/3405605

#SPJ4

We hope our answers were helpful. Return anytime for more information and answers to any other questions you may have. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.