Sign In Sign Up Ask an AI advisor
jaleelat3164
jaleelat3164
06.12.2019 • 
Business

An article in the wall street journal in 2016 noted that: open double quoteover 30% of euro-denominated investment-grade corporate bonds trade at a negative yield while 84% yield less than 1%.close double quote source: christopher whittall, open double quotebond investors cash out in europe, head to u.s.,close double quote wall street journal, september 1, 2016. 1. what caused so many european corporate bonds to have negative interest rates? a. central banks were slowing asset purchases. b. the european central bank cut interest rates to negative levels. c. the european economy was growing at higher than normal rates. d. inflation rates were consistently increasing. 2. why would anyone buy a bond with a negative interest rate? a. competing interest rates on bonds and other securities of comparable risk were low. b. a lack of availability of corporate bonds. c. many of the bond purchases were made by individual investors who were wary of investing in higher risk bonds. d. a lack of availability of government bonds.

Solved
Show answers

Ask an AI advisor a question

I want advice