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2 years ago

Any factor that leads businesses to collectively expect lower rates of return on their investments ______ investment demand.

1 answer:

7 0

Any factor that leads businesses to collectively expect lower rates of return on their investments reduces investment demand.

The aggregate call includes consumption and funding demand. aggregate call for is the call for of total items and services in the economy as it is not possible to be counted all the bodily quantities the overall expenditure on all goods and offerings are taken into consideration.

Investment call for refers to the demand with the aid of corporations for physical capital items and offerings used to hold or extend its operations. Think of it because the workplace and factory space, machinery, computer systems, desks, and so forth might be used to operate an enterprise.

Funding is a part of combination demand; modifications in funding shift the aggregate call for curve by the amount of the preliminary exchange times the multiplier.

The question is incomplete. Please read below to find the missing content.

Any factor that leads businesses to collectively expect lower rates of return on their investments _____.

Multiple choice question.

A) reduces output

B) increases output

C) increases investment demand

D) reduces investment demand

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If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate

Law Incorporation [45]

Answer:

the current yield on the bond is lower now than when the bond was originally issued.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.

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3 years ago

You are interested in investing in a five-year bond that pays a 6.6 percent coupon rate with interest to be received semiannuall

NikAS [45]

Answer:

Assuming a par value of $1,000, the most i would be willing to pay for this bond is $875.85

Explanation:

The price of a bond is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are to be paid semi-annually and the par value of the bond that will be paid at the end of 5 years.

During the 5 years, there are 10 equal periodic coupon payments that will be made. Assuming a par value equal to $1,000, in each year, the total coupon paid will be $1000*0.066$ =$66. This annual payment will be split into two equal payments equal to $\frac{66}{2}=33$ . This stream of cash-flows is an ordinary annuity.

the required rate of return is to 9.8% per annum which equates to 4.9% per semi annual period.

The PV of the cash-flows = PV of the coupon payments + PV of the par value of the bond

=33*PV Annuity Factor for 10 periods at 4.9%+ $1,000* PV Interest factor with i=4.9% and n =10

$= 33*\frac{[1-(1+0.049)^-^1^0]}{0.049}+ \frac{1,000}{(1+0.049)^1^0} =875.85$

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4 years ago

Carson company sells sporting tickets in advance of the event for $500,000. The journal entry to record the sale is?

ki77a [65]

Carson company sells sporting tickets in advance of the event for $500,000. The journal entry to record and the sale transaction would include cash and credit unearned.

Account Debit Credit

Cash $500,000

Credit Unearned Ticket Revenue $500,000

Unearned revenue or credit is money received by an individual or company for a service or product that has yet to be provided or delivered. This includes the thought of as a prepayment for goods or services that a person or company is expected to supply to the purchaser at a later date.

Hence, Carson company sells sporting tickets where the debit cash $500,000 and credit unearned ticket revenue is $500,000

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5 0

1 year ago

Read 2 more answers

Why does the government carefully monitor horizontal mergers?

Viefleur [7K]

The government carefully monitors horizontal mergers because the resulting single firm might gain monopoly power in its market, and the government doesn't want it to become a monopoly.

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3 years ago

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Sam has been convicted of burglary, theft, possession of drug paraphernalia, and destruction of private property. This was the r

Nutka1998 [239]

Answer:

If her purpose was to rehabilitate Sam so that the community would benefit by removing his need to commit crimes, this would be consistent with the idea of: Community based program such as Prisoner Reentry Initiative (PRI).

Explanation:

in 2004, US congress enacted the Prisoners Reentry Initiative (PRI). The program was managed by the Department of Labor,a sum of $300 million dollar was voted for to execute the project which includes transitional housing, job training and job placement for convicted criminals.

This initiative also incorporates the use of peer mentoring and faith based interventions to help with the transition from prison to the community.

mental health services, substance abuse treatment and skill acquisition programs was also introduced.

This idea stems from the belief that external factors can also affect a persons behavioral pattern.

This initiative was found to be effective as it was truly devoted to meeting the need of individuals and impacting the community in general.

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3 years ago