0
Will a bond's yield to maturity increase or decrease when the bond become subordinated to another debt issue?
Wiki User
∙ 12y ago
The yield to maturity will most likely increase because the bond will be considered more risky. This means investors will demand a higher yield to own it. Of course, the yield to maturity will only be higher if all the payments are actually made and the bond doesn't default.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What happens to a bond's yield to maturity if investors learn that the bonds are subordinated to another debt issue?
Nothing, but its coupon rate would likely decrease as it is now considered a riskier asset.
What will cause a decrease in one liability and an increase in another liability?
Paying off one loan by getting another loan will decrease one liability and increase another.
Why population increase and decrease?
Populations increase and decrease because people leave one country (emigration) and enter another (immigration). A rise or fall in either the birth rate or death rate in a country can also cause populations to increase or decrease.
What will increase one asset and decrease another asset?
There are many transactions that do this. If you receive a payment on account from a customer, you increase Cash and decrease Accounts Receiveable. If you pay for raw materials or merchandise with cash, you increase Inventory and decrease Cash. You can also increase Fixed Assets and decrease Cash if you buy an asset with cash. Moving product from Raw Materials to Finished Goods Inventory is another example. Moving excess cash to an investment account does the same thing. When you make a sale, you decrease Inventory and increase Accounts Receivable.
What transactions increase in one owner's equity equals decrease in another owner's equity?
Profits would increase owners equity, loss and drawing would decrease an owners equity.
Can a transaction that causes an increase in an asset also cause a decrease in another asset?
Yes. If you purchase a new desk, your furniture asset account would increase, and your cash asset account would decrease.
Would you expect the size of the temperate zone to increase if the Earth went through another Ice Age?
decrease
What occur when a drug reacts with another drug and food or dietry supplement to increase or decrease the effect of one of the substances?
Drug Interactions.
Can a increase in one asset increase another asset?
Since both sides of the balance sheet (the Assets side and the Liabilities/Owners' Equity side) must have equal totals, an entry showing an increase in an asset must be balanced with an corresponding increase in a liability or a decrease in another asset.Generally, an increase in an asset (e.g., the acquisition of a new asset) means that either we have decreased another asset (e.g., cash) to pay for it, or we have incurred debt to acquire the asset (thereby increasing our liabilities).1) increase in one asset - corresponding decrease in another asset (e.g. we pay cash for new asset)2) increase in one asset - corresponding increase in a liability (e.g., we acquire an asset on credit)
Can ordinary water be boiled in 95 degree Celsius or 105 degree Celsius?
pure water (with no impurities added ) can only boil at 100 degrees Celsius , no other temperature . But if we add impurities to it than the temperature at which the water will boil can increase or decrease. Another point is that when we increase or decrease the atmospheric pressure, the temperature at which ordinary water boils (i.e.100 degrees Celsius) can also increase or decrease.
How do you increase or decrease the movment of molecules?
Molecules react to thermal energy, or heat, as well as pressure. When you increase the temperature of molecules, they will increase their vibration and movement. Pressure can also allow molecules to move from one area to another.
If energy cannot be created nor destroyed why does its value sometimes decrease or increase?
Energy can be transferred from one place to another, or one type of energy can be converted into another kind.Also, USABLE energy will decrease over time; while the unusable energy increases.
