When a firm puts up collateral assets to back up a loan, the debt is said to be?

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Answer 1

In secured debt, a firm puts up collateral assets to back up a loan.

What is Secured Debt?

A secured loan is one in which the lender pledges an asset as security for the loan, turning the pledged asset into a secured debt owing to the lender (the creditor). Secured debt has some form of security. In the event of a secured loan default, the collateral may be taken back by the lender. Mortgages, vehicle loans, and credit line cards are a few examples of secured debt. Unsecured debt is not backed by any collateral. An unsecured loan's funding is provided by the lender only on the strength of the borrower's credit and repayment commitment. Secured debts are obligations for which the debtor pledges a valuable item as a guarantee or deposit for the loan.

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Related Questions

The labor-force participation rate is :_________
a. 47.1 percent.
b. 50.2 percent.
c. 65.9 percent.
d. 70.2 percent.

Answers

The labor force participation rate is 65.9% in 2021-22, It tells us about the total number of people who are workers in fact, in an economy who are employed and unemployed.

So according to the OECD (a global forum that promotes policies and their implications globally) the current labor force participation rate has been calculated as 65.9 percent for the year 2021-2022. Resultantly, none of the options are correct.

The slight decrease in the labor force participation rate from the year 2012 onward shows a pattern of people losing their jobs or the unemployed ones who could not find a job but are active in the field looking for jobs.

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managerial accounting . multiple choice question. provides no value to the management team helps managers achieve the organization's goals is only used by top management is used for external reporting

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The five main goals of managerial accounting are supported by a variety of tools, methods, and viewpoints that offer value to a business.

The discipline of management accounting, often known as managerial accounting, is useful in giving the management financial information and the right resources to aid managers in decision-making.

Managerial accounting can be used to make both short-term and long-term choices about a company's financial health. Managerial accounting supports managers in making operational choices that aim to improve the operational effectiveness of the business and support long-term investment choices.

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the of change required to remain competitive or simply keep up has created an organizational climate in which hundreds of projects are implemented concurrently. (enter only one word per blank.)

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The velocity of change  required to remain competitive or simply keep up has created an organizational climate in which hundreds of projects are implemented concurrently.

How does a company remain competitive?

The competitiveness of an organization is achieved in conjunction with various organizational actions, such as its strategy and management. Some of the most essential characteristics to achieve competitive advantages are through innovation, quality in products and services and organizational ethics.

With the increase in competitiveness in the globalized environment, companies need to stand out in several areas, therefore, several projects are implemented simultaneously, requiring management that includes:

Task delegationFocus and consistencyCooperationTask prioritizationUse of resources and information systemsCommunication developedFeedback

Therefore, to remain competitive, a company must be innovative and offer value to its stakeholders through joint efforts.

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You have an investment opportunity that requires an initial investment of today and will pay in one year. what is the irr of this opportunity?

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Initial investment = $8,500 Cash flow in 1 year initial investment of today and will pay in one year.

What is investment ?

Investment is the commitment of a resource to a value increase over time. To invest, one must give up a current resource, such as time, money, or effort.

Profiting from the asset being financed is the aim of financial investment. Returns from investments might come in the form of dividends, interest, rental income, or a combination of income and capital gains. Unrealized capital gains (or losses) or income from investments, such as unrealized capital gains, can also be a type of it. The return could also include monetary gains or losses brought on by changes in foreign exchange rates.

Investors can often expect larger returns on riskier investments.

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Assume that crackers and soup are complementary goods. the effect on the soup market of an increase in the price of crackers (other things being equal) would best be described as a(n)?

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Assume that crackers and soup are complementary goods. The effect on the soup market of an increase in the price crackers (other things being equal) would best be described as a decrease in the quantity of soup demanded.

A good that adds value to another good or service is said to be complementary. To put it another way, they are two items that the customer uses in tandem with one another. For instance, cereal and milk or a DVD and a DVD player.

A complementary good in economics is one whose appeal rises along with the appeal of its complement. Technically speaking, it exhibits a negative cross elasticity of demand, meaning that when the price of one good decreases, demand for it also rises.

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____is an account that consists of a company's cumulative net income less any losses and dividends declared since its inception.

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Retained earnings is an account that consists of a company's cumulative net income less any losses and dividends declared since its inception.

What is Retained earnings ?

The cumulative net income of a corporation that is kept by the corporation at a specific moment in time, such as at the conclusion of the reporting period, is referred to as retained earnings (also known as plowback). The net income (or net loss) at that time is transferred from the profit and loss account to the retained earnings account at the conclusion of the period.If the retained profits account has a negative balance, it may also be referred to as having an accumulated deficit, accumulated losses, or another similar word. Any portion of a credit balance in the account may be capitalized by the issuance of bonus shares, and the remaining portion is carried over to the following period. The balance may then be used to distribute dividends to shareholders. Dividends must only be paid out of the retained earnings account's positive balance at the time of payment, according to some legislation, notably those of the majority of US states. This safeguards creditors from a company's dividend-based liquidation.This safeguards creditors from a company's dividend-based liquidation. However, a few governments let a corporation's accumulated deficit to keep growing when dividends are paid. A liquidating dividend or liquidating cash dividend is what this is.

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the norwegian kroner:usd exchange rate is 10:1 while the norwegian kroner:euro rate is 12:1. if you start with 1,000,000 euros, how many usd will you have, using these exchange rates

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Given the exchange rate of  NK:USD is 10:1 means 1 dollar is divided by 10 to get the Norwegian Kroner, Similarly exchange rate of

NK: ER is 12:1 means 1 euro is divided by 12 to get the Norwegian Kroner through which we get  8,333.4 USD if we use 1,000,000 euros

Norwegian Kroner(NK) : Euro Rate(ER) = 12:1

1,000,000 euros will be 83,334 i.e., (1,000,000)*1/12  = 83,334

But, Norwegian Kroner : USD = 10:1

So, the money after facing the exchange rate will be 8,333.4 USD

(83,334)*1/10 = 8,333.4

The exchange rate is the cost of one country's currency in comparison to another country's currency. The exchange rate is "fixed" when countries use gold or another recognized standard and each currency is valued at a specific quantity of the metal or other standard.

Calculations of how much one currency will exchange for another are usually done using data from each of the nations' economies, market interest rates, gross domestic products, and unemployment rates. They are widely referred to as market exchange rates and are established in the global financial market.

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Your company has entered into a 3-year contract with a government agency. your best option for ec2 is reserved instances. which aws feature would you use to track your reserved instance usage?

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An AWS feature which would be used in order to track your Reserved Instance usage is the AWS cost and usage report.

The Amazon Web Services (AWS) cost and usage report contains the most comprehensive set of AWS cost and usage data available, which also includes additional metadata about AWS pricing, services, and reservations. For example, Amazon EC2 Reserved Instances.

AWS is architected in order to be the most secured and flexible cloud computing environment which is available today. Whereas, an Amazon Reserved Instance (RI) is a billing discount which allows a person to save on their Amazon EC2 usage costs.

Hence, Reserved Instances provides a person with savings on their Amazon EC2 costs.

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Canada and the u.s. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if?

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Both the United States and Canada produce computer software and wheat. If Canada's opportunity cost of producing a bushel of wheat is lower than that of the United States, then Canada is considered to have a comparative advantage in producing wheat.

OPPORTUNITY COST: In economics, opportunity cost refers to the value of what you must forgo in order to choose something else.

The ratio of what you give up to what you get could be used as a formula to determine opportunity costs.

Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if The opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S.

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ina has been reading about international trade and absolute and comparative advantages. she and her friend, gina, have to create a powerpoint presentation for their business class about international trade. ina can create animated powerpoint presentations that clearly and precisely convey the message they need to make, but in a light and entertaining fashion. however, she is not good at public speaking. gina is an excellent public speaker and can create equally excellent powerpoints. both students have homework for other classes to do, so they agree to divide the work: ina will create the powerpoint and gina will do the verbal and written part of the presentation. what advantage does gina have over ina in making presentations?

Answers

Gina has a comparative advantage over Ina in making presentations.

What is comparative advantage?

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Gina has a comparative advantage over Ina in making presentations because she is more efficient in this activity. Economic theory suggests that the person who has a comparative advantage in an activity should carry out the activity.

A person has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other people.

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Several u.s. compliance laws provide confidence in the financial markets. __________ are the primary beneficiaries of these laws.

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Several u.s. compliance laws provide confidence in the financial markets. shareholders are the primary beneficiaries of these laws.

Who is a shareholder?

Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations. With this ownership structure, they can benefit from a company's success.

In general, a shareholder is an investor since they expect their investment in their firm stock to generate a profit for them. By this reasoning, however, an investor is not necessarily a shareholder because they can invest in a corporation without obtaining shares.

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What is the present value of a 670 paymnet in three years when the discounte rate is 7 pecent?

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The present value of a 670 payment in three years when the discount rate is 7 percent i  $546.92.  

Cash flow refers to the net balance of coins stepping into and out of an enterprise at a specific factor in time. cash is continuously entering into and out of an enterprise. for example, when a retailer purchases stock, money flows out of the commercial enterprise closer to its suppliers.

Cash flow is a dimension of the number of coins that comes into and from your commercial enterprise in a specific time period. when you have advantageous coins flow, you have got greater cash coming into your enterprise than you've got leaving it so that you pay your payments and cowl other expenses.

$546.92        

Statement showing Cash flows      

Particulars   Time   PVF 7%   Amount   PV

Cash flows                    1.00                 0.9346                                           -                                             -  

Cash flows                    2.00                 0.8734                                           -                                             -  

Cash flows                    3.00                 0.8163                                 670.00                                 546.92

Present value of Cash Flows                546

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Why does south korea have a higher level of real gdp per capita than north korea?

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Answer:

Cuz North Korea is Dictatorial state

top shelf company builds oak bookcases. assume that you have the following information about top shelf’s costs for the most recent month: depreciation on factory equipment $ 1,800 depreciation on delivery trucks 800 wood used to build bookcases 1,500 production supervisor’s salary 2,800 glue and screws used in the bookcases 250 wages of persons who assemble the bookcases 2,500 cost to run an ad on local radio stations 600 rent for the factory 3,500 ceo’s salary 3,000 wages of person who sands the wood after it is cut 1,600 required: determine each of the following costs for top shel

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The costs for top-shelf according to the question is The Total Direct Material is $1500, Total Direct labor cost is $4100, Total Manufacturing Overhead is $8350, Prime Cost is $5600, Total Conversion costs is $12450 Total manufacturing cost is $13950 Total period cost is $4400

In production, retail, and accounting, a cost is the cost of money that has been used up to provide something or deliver a carrier, and as a result, isn't always available for use anymore. In enterprise, the fee may be one of acquisition, wherein case the quantity of cash expended to collect it's far counted as value.

Direct expenses are costs that may be connected to a specific product, even as indirect expenses are fees worried about retaining and strolling a company. As an enterprise owner, you will have clearer expertise in how to set pricing if you could classify your prices successfully.

Direct material

Woods used to build bookcases = $1500

Total Direct Material = $1500

Direct Labour

Wages of persons who assemble the bookcase = $2500

Wages of persons who sand the wood after it is cut = $1600

Total Direct labor cost = $4100

Manufacturing Overhead

Depreciation on factory equipment = $1800

Production supervisor’s salary = $2800

Glue and screws used in the bookcases = $250

Rent for the factory = $3500

Total Manufacturing Overhead = $8350

Prime Cost

Prime Cost = Total Direct Material + Total Direct labor cost

Prime Cost = 1500 + 4100 = $5600

Conversion Cost

Conversion Cost = Total Direct labor cost + Total Manufacturing Overhead

Total Conversion Cost = 4100 + 8350 = $12450

Total manufacturing cost

Total manufacturing cost = Total Direct Material + Total Direct labor cost Total Manufacturing Overhead

Total manufacturing cost = 1500 + 4100 + 8350 = $13950

Total period cost

Total period cost = Depreciation on delivery trucks + Cost to run an ad on local radio station + CEOs salary

Total period cost = 800 + 600 + 3000 = $4400

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A 90-day note is signed on october 21. the due date of the note is? january 21 january 19 january 20 january 18

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A 90-day note is signed on October 21. the due date of the note is January 19.

Reason:

90 days = 31-21=10 days in October + 30 days in November + 31 days in December + 19 days in January. Always start with the number of days in the first month and subtract the date of the note. (October: 31-21 = 10).

A bank will offer 90-day loan notes, a short-term financing option with a fixed interest rate, to clients or enterprises. Usually, a coupon is used to settle the note. This means that the full loan amount, plus interest, is due 90 days after the loan was issued.

A 90-day loan note is one of the many types of bank loans. It is known as a note rather than a bond since it has the shortest term available. Because it is a short-term loan, it has the highest annual percentage rate (APR) for repayment of any other bank loan. These loans are typically obtained in anticipation of a bonus or other unanticipated payment.

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Businesses such as hospitals, insurance companies, financial institutions, and attorneys convert resources into _____ products.

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Any activity that sells products or services to customers with the intention of making a profit is considered a business.

What is customers ?

Consumers are people or groups who desire to order things, use things they've bought, or use them for purposes that are largely social, familial, domestic, or similar and have nothing to do with business or entrepreneurial activity.

A consumer in an economy buys goods or services primarily for their own use as opposed to reselling them or using them for business purposes. Customers must spend money to purchase goods or services (or an equivalent). then consume (use up). Therefore, consumers are a vital part of any economy and have a significant impact on the economic structure of a capitalist society.

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Firms are increasingly trying to expand their exports to what country because it has the world's second-largest population and a growing middle class?

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China is now the second-largest economy and the third-largest market for U.S. exports. India is one of the fastest growing market

Parties can congregate in a market to facilitate the trade of goods and services. Typically, the parties involved are buyers and sellers. The market may be actual, like a physical store where customers interact with each other in person, or it may be virtual, like an online market, where customers and sellers do not interact physically. The availability of an arena, buyers, and sellers, as well as a product that can be bought and sold, are some of the fundamental features that help define a market. A market is any location where two or more parties can come together to conduct an economic transaction, even one that doesn't include cash.

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Which stage in the formal decision making process involves making the choice among the alternatives?

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The fourth stage in the formal decision-making process involves making the choice among the alternatives

This is further explained below.

What is formal decision-making?

Generally, The term "formal decision" refers to a written decision that has been issued by the Regulator to finalize a tariff approval.

This decision must include all of the relevant findings, reasoning, principles, and conclusions.

In conclusion, The selection of one course of action over another is the fourth and final step in the formal process of decision-making.

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During march, zea inc. transferred $66,000 from work in process to finished goods and recorded a cost of goods sold of $72,000. the journal entries to record these transactions would include a:______.

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The journal entries to record these transactions would include an A.credit to completed Goods65,000Work in Process65,000Cost of goods Sold71,000Finished.

A journal entry is a file of commercial enterprise transactions within the accounting books of a business. Well-documented magazine access includes the proper date, quantities to be debited and credited, an outline of the transaction, and a unique reference number. A magazine entry is the first step within the accounting cycle.

An entire journal entry is manufactured from 6 factors a reference number, date, account section, debits, credit, and a magazine rationalization. we can report those journal entries in either a standard journal or a special journal. There are three important kinds of journal entries compound, adjusting, and reversing.

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corporate taxes tantor​ supply, inc., is a small corporation acting as the exclusive distributor of a major line of sporting goods. during the firm earned before taxes. a. calculate the​ firm's tax liability using a flat tax rate of ​%. b. how much are tantor​ supply's ​after-tax earnings? question content area bottom part 1 a. the​ firm's tax liability is ​$

Answers

During the firm earned before taxes: a) $19,700, b) $72,800, c)21.30%, d) 34%

Taxes

Taxes are necessary contributions levied by a government entity, whether local, regional, or national, on individuals or corporations.

The accompanying schedule is used to compute the firm's tax liability:

Tax liability = base tax + marginal tax

= $13,750 + 34% of ($92,500-$75,000)

=$13,750+$5,950

=$19,700

b.  After-tax earnings Tantor Supply, Inc.'s 2013 is:

= taxable income - tax liability

=$92,500 - $19,700

=$72,800

c. The average tax rate for the firm is:

=tax liability / taxable income

=$19,700 / $92,500

=21.30%

d. The marginal tax rate of the company:

This is the tax on an additional dollar of income.

The effective rate of tax is 34%.

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Marnie makes regular annual payments of $5,000 to her individual retirement account (ira). if the amount of interest she earns is 5.6% per year, determine the future value of the account after 35 years. round to the nearest cent. a. $540,581.69 b. $511,914.48 c. $190,508.32 d. $189,623.41 please select the best answer from the choices provided a b c d

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Marnie makes regular annual payments of $5,000 to her individual retirement account (ira). if the amount of interest she earns is 5.6% per year, determine the future value of the account after 35 years. round to the nearest cent.  $511,914.48

Interest, which is often represented as an annual percentage rate, is the cost associated with borrowing money (APR). A lender or financial institution is paid money in interest as compensation for lending out money. A stockholder's percentage ownership in a corporation, which is typically stated as an interest, is another definition of interest. The financial fee for borrowing money is called interest, and it is typically stated as a percentage, such as an annual percentage rate (APR). Inflation rate, duration of loan, liquidity, and default risk are important variables that determine interest rates. Ownership in a business is another way to exhibit interest.

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Answer:

b

Explanation:

ocean corporation sells a product for​ $500 on account to great atlantic sales. this transaction will be recorded in the​ . question content area bottom part 1 a. sales journal b. purchase journal c. cash payments journal d. cash receipts journal

Answers

ocean corporation sells a product for​ $500 on account to great Atlantic sales. this transaction will be recorded in the sales journal.

Sales journal is an accounting journal that is used as a tool to record sales transaction activities. This sales transaction will be recorded in various accounts using debit and credit rules.

Usually the information stored in the sales journal for each transaction includes:

Transaction dateAccount numberCustomer's nameInvoice number Sales amount (accounts receivable debit and sales account credit)

The sales journal basically only records accounts receivable, which means sales made in cash are not recorded in it.

Sales made in cash are recorded in the cash receipts journal account. But sometimes in practice there are still those who combine cash sales in the sales journal account.

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The last step of a cost analysis is to examine the P&L statement or expense reports.

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The last step in the accounting cycle is to make remaining entries by finalizing expenses, revenues and brief accounts on the quit of the accounting period. This includes closing out temporary bills, along with expenses and sales, and moving the net earnings to permanent bills like retained profits.

Income and loss (P&L) declaration refers to a financial statement that summarizes the sales, fees, and fees incurred at some stage in a specified length, usually a quarter or fiscal year. these records offer records about a company’s capacity or inability to generate profit by increasing sales, lowering expenses, or each. P&L statements are often presented on a cash or accrual foundation. company managers and traders use P&L statements to analyze the economic health of a company. A profit and loss (P&L) statement summarizes the revenues, fees and fees incurred all through a selected time frame. A P&L statement offers information about whether or not a company can generate profit by increasing revenue, decreasing expenses, or each. The final step within the accounting cycle is to make closing entries with the aid of finalizing costs, sales and brief bills at the stop of the accounting length. This includes remaining out brief money owed, such as fees and revenue, and moving the net earnings to everlasting debts like retained earnings.

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Differential cost is the difference in ________ between two alternatives.
a. average cost
b. total cost
c. median cost
d. marginal cost

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Differential cost is the difference in average cost between two alternatives.

Differential cost refers to the difference between the price of two opportunity selections. The fee happens while a business faces several similar options, and a preference ought to be made by using selecting one alternative and dropping the other.

A differential in accounting compares the cost of two or more gadgets or the final results of 1 desire over another. The distinction in cost between the picks is the differential price. Opportunity price, then again, represents the benefits you may omit out on whilst selecting one alternative over any other.

So, the differential cost is the result of an opportunity direction of movement. For example, difference in charges can also rise up due to alternative of labor by machinery and distinction in fees of opportunity courses of movement will be the differential price.

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What kind of research method would be best suited if you were hired by a real estate company to learn how the residents in a gated community feel about racial desegregation?

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Surveys and interviews are the research method that would be best suited if we were hired by a real estate company to learn how the residents in a gated community feel about racial desegregation.

Surveys reflect a low-cost option research method for garnering a huge amount of data. They are a kind of descriptive research. They demonstrate the most excellent way to achieve a comprehension of an individual's attitude towards a matter. It provides a great aid in measuring a wide variety of unobservable data, such as stated preferences, traits, beliefs, behaviors, and factual information. It helps the researcher to determine validity, reliability, and statistical significance.

Interviews demonstrate a quantitative type of research method. This requires the researcher to ask questions and elicit facts or statements from the interviewee. It involves open-ended questions in a well-planned and executed manner.

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An investor purchased a corporate bond at 98th in 5/8 and sold the bond at 101 and 3/4 how much money did he make?

Answers

The correct option is (C) profit of $31.25.

The investor made a Profit of $31.25 on this transaction.

What is a corporate bond?

• A corporation may issue a bond known as a “corporate bond” to obtain capital for a number of purposes, including ongoing operations, mergers and acquisitions, or business expansion.

• The phrase is typically used to describe debt securities with a longer maturity of at least one year.

Commercial paper is a term used to describe corporate debt instruments with a maturity of less than one year.

When the bond was sold, the investor made a profit of 3 1/8 points. We know that a bond is worth one point ($10), three points ($30), and an eighth of a point ($1.25). We have a profit of $31.25 after adding those figures together.

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The complete question is:

An investor purchased a corporate bond at 98 5/8 and sold the bond at 101 ¾. How much money did he make or lose on this transaction (excluding commissions)?

A)Loss of $31.25

B)Profit of $3.125

C)Profit of $31.25

D)Loss of $3.125

greg has one employee, sasha, who is a weak presenter and gets incredibly stressed out about presenting in workshops, but is an excellent writer. greg decides to emphasize sasha’s writing abilities and gives her opportunities to shine outside of the spotlight. greg is practicing

Answers

greg is practicing strengths based management

Whether it's a company, a nonprofit, or a government agency, management (or managing) is the administration of the organisation. It is the science and art of managing the business's resources. Setting an organization's strategy and organising the work of its staff (or volunteers) to achieve its goals through the use of resources such as financial, natural, technological, and human resources are all included in management. In management, the terms "run the business" and "change the business" are used to distinguish between the continuation of the delivery of goods or services and their adaptation to satisfy the changing needs of customers - see trend. Managers are another group of individuals who fall under the umbrella of "management."

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List the four steps involving analysis when accounting for a department's activity.

Answers

A department's activity analysis for a time period is accounted for in four processes that involve study of:
(1) physical flow
(2) equivalent units
(3) cost per equivalent unit
(4) cost assignment and reconciliation.

Define physical flow, equivalent units, cost per equivalent unit and cost assignment and reconciliation.


Physical flow: In logistics networks, the movement of materials, goods, inventories, and other items is referred to as physical flow, with the primary direction of movement being from the point of origin to the site of consumption.

Equivalent units: This details the amount of work that has been done on a specific number of tangible objects. You can simply multiply the quantity of physical goods by the amount of effort done on them to determine equivalent units.

Cost per equivalent unit: It is calculated as the total of the beginning work-in-process costs and the costs added during this period divided by the equivalent units.

Cost assignment and reconciliation: It is the process of checking records to ensure that the project's expenses match ongoing activity in the project

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Martinez corporation reported net sales of $781,000, net income of $126,000, and total assets of $7,794,108. the profit margin is:______.

Answers

Profit margin is 16.13 %.

working:

Net income   $       126,000

Net sales   $       781,000

Profit margin [126000/781000] is 16.13%.

Profit margin is a measure of profitability, it's miles calculated by way of locating the profit as a percentage of the revenue. There are three kinds of profit margins are gross profit margin, operating income margin and net earnings margin. Gross income Margin is calculated as gross income divided via internet sales.

Profit margin is the distinction among the entire cost to run your enterprise and the overall revenue it brings in. The better your earnings margin, the extra cash your commercial enterprise gets to preserve.

Profit margin earnings is the quantity of income left over when you pay your prices. To calculate income margin, divide your net profit by way of your general sales revenue to get a percent discern. Gross profit is revenue much less fee of goods bought.

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An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on treasury securities, everything else held constant.

Answers

A decrease in the riskiness of corporate bonds will Decrease the yield on corporate bonds and Increase the yield on Treasury securities, everything else held constant.

So, The answer is D decrease; increase

A sort of financial product sold to investors is a corporate bond, which is issued by a business. The investor receives a predetermined amount of interest payments at either a fixed or variable interest rate in exchange for providing the firm with the money it requires. The bond "reaches maturity" when it stops making payments and the initial investment is refunded. The ability of the corporation to repay the bond often serves as its security, and this ability is based on its expectations for future revenues and profitability. Physical assets of the corporation may occasionally be utilized as collateral. So, this decreases the riskiness of corporate bonds as well as the yield on corporate bonds in turn increasing treasury securities yield.

The question is incomplete, complete question is:

A decrease in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant. A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase  

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