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Why is a change in required yield for preferred stock likely to have a great impact on price than a change in required yield for bonds?
Bonds have a maturity date while most preferred stocks are perpetual, which means they never mature. No matter the change in interest rates before maturity, bonds will eventually be worth par or 100 when they mature. So interest rate changes may affect the price in the near term but the investor will know what s/he will get at maturity. Since preferred stocks never mature, there is no value in the future that anchors the price of the bond. Therefore, if interest rates go up, the value of the preferred may be permanently impacted by a better interest rate than the stated dividend yield. Thus, the price of the preferred stock will be volatile than that of a bond.
What else can I help you with?
Why is change in the required yield for preferred stock likely to have a greater impact on price than a change in required yield for bonds?
I don't know
Any change in its beta is likely to affect the required rate of return on a stock which implies that a change in beta will likely have an impact on the stocks price?
False
What factors among the following are least likely to impact the long-run growth of an economy?
Among the following factors, government spending on infrastructure projects is least likely to impact the long-run growth of an economy.
What is the likely impact on monetary policy on consumers?
Consumers will save more and spend less.
What is the Significance of cross elasticity in business decision making?
The degree of change in the demand for one product as a response to a change in the price of a different product. For example, an increase in the price of petroleum is likely to have a negative impact on the demand for gas-guzzling vehicles and a positive impact on the demand for fuel-efficient vehicles. The cross elasticity for substitutes is generally positive, in that a price increase for one product will result in an increase in demand for a substitute.
Why is change in the required yield for preferred stock likely to have a greater impact on price than a change in required yield for bonds?
I don't know
Any change in its beta is likely to affect the required rate of return on a stock which implies that a change in beta will likely have an impact on the stocks price?
False
What education is necessary for the NBA?
No professional education is required. A generalized knowledge of the game of basketball is likely preferred.
How would this change affect the electric circuit?
The change would likely impact the flow of electricity in the circuit.
Can gunpowder be made without sulfur?
No, sulfur is a crucial component in gunpowder. Gunpowder is typically composed of sulfur, charcoal, and potassium nitrate (saltpeter). Removing sulfur from the mixture would change the composition and likely impact the effectiveness of the gunpowder.
How do you spell prefebly?
The likely word is preferably (in a preferred manner).
How do you spell the word favite?
The likely word is favorite (most preferred).
Which change was most likely encountered as the ecologist drove up the mountain?
The ecologist most likely encountered changes in temperature as they drove up the mountain. As altitude increases, temperatures typically drop due to the change in elevation. This change in temperature can have a significant impact on the types of plants and animals that are able to survive at higher altitudes.
Do you have to include the retrieval date in APA citations?
No, the retrieval date is not required in APA citations for online sources unless the content is likely to change over time.
Why might some employers preferred child workers to adult workers inte 1800's?
Children were preferred because they were manageable, cheaper and less likely to go on a strike.
If the Environmental Protection Agency declares climate change a danger to public health what would be the most likely impact to producers?
Producers will see an increase in business costs.
What is the impact of not finishing wood furniture?
If you don't protect the wood, it will be more susceptable to staining, be hard to clean and more likely to change with humidity changes, making it more likely to crack and split. It will also dent and scratch easier.
