true or false and why thank you al credit ratings have served as reasonable indi
ID: 2809901 • Letter: T
Question
true or false and why
thank you
al credit ratings have served as reasonable indicators of the likelihood of default. ( 25. In general credit ratings have served as reasonable indicators of the likelihood of default () 6. Investors are less concerned with after-tax income than before-tax income 7. A convertibility clause allows investors to convert the bond into a specified number of common stock shares lity clause allows investors to convert the bond into a specified n (8. A financial market is a market in which financial assets (securities) can be purchased or sold )10 The risk that the sale price of an asset will be more than the purchase price of an asset is )9. Financial institutions intermediate between suppliers and demanders of money. called liquidity risk. ()11. According to the loanable funds theory, market interest rates are determined by the factors that control the supply of and demand for loanable funds. 12. Moody's Investor Service and Standard and Poor's Corporation are the most popular credit agencies ()13. Suppliers of loanable funds supply more funds at higher interest rates )14. The yield on callable bonds should be higher than on more risky bondsExplanation / Answer
Answering the first 3 questions as per Chegg policy
5. True. Credit ratings in general from legitimate credit rating agencies provide a reasonable indicator of the likelihood of default.
6.False.Investors are more concerned with after-tax income because it is the actual realized in hand income.
7.True.
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