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Anvisha [2.4K]
1 year ago
5

Differentiate between a bond coupon rate and the market rate of interest.

Business
1 answer:
Arlecino [84]1 year ago
5 0

The differences between a bond coupon rate and the market rate of interest are:

  • A coupon rate is a fixed rate of return attached to the face value of the bond paid to the purchaser from the seller, while the market interest rate can change dramatically throughout the lifespan of the bond.
  • The coupon rate is calculated on the face value of the bond, which is being invested. The interest rate is calculated considering the basis of the riskiness of lending the amount to the borrower. The coupon rate is decided by the issuer of the bonds to the purchaser. The interest rate is decided by the lender.

A bond is a debt security, similar to an IOU. debtors problem bonds to raise money from investors inclined to lend them money for a certain amount of time. while you buy a bond, you are lending to the provider, which may be a government, municipality, or enterprise.

Bonds are issued with the aid of governments and agencies after they want to elevate money. by means of shopping for a bond, you are giving the provider a mortgage, and they agree to pay you again the face fee of the loan on a particular date and to pay you periodic interest payments along the way, generally two times a year.

Learn more about bond here: brainly.com/question/25965295

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The concept that best describes Jill's action of contacting only the first three suppliers instead of calling all eight suppliers is <u>A) cognitive limitations.</u>

<h3>What are cognitive limitations?</h3>

Cognitive limitations are the human and information processing restrictions imposed on decision-making.  The originate from the limited human cognitive nature and information processing abilities. Cognitive limitations lead to probability distortions.  They cause errors in decision-making.

The implication of Jill's action is that she might be making the wrong decisions.

<h3>Answer Options:</h3>

A) cognitive limitations.

B) optimal decision making.

C) the illusion of control.

D) escalating commitment.

Thus, the concept that best describes Jill's action of contacting only the first three suppliers instead of calling all eight suppliers is <u>Option A</u>.

Learn more about cognitive limitations at brainly.com/question/13649097

7 0
2 years ago
Lash World Pool Supplies wants its salespeople to call on pool wholesalers five times per year and to spend two hours on each sa
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Answer:

a) 10

Explanation:

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First step is to determine the selling time

Using this formula

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Let plug in the formula

Selling time=1000 * 5 *2 hours

Selling time= 10,000 hours

Second step is to determine the number of hours they used to sell

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Now let determine how many salespeople does Splash World need to service 1000 accounts

Number of salespeople=10,000 hours /1000 hours per year

Number of salespeople=10

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Answer:

See the explanation below.

Explanation:

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The evidence that Ewing has lost 154 pounds in weight over the stipulated period is a consideration that sufficient enough under the law. The payment of $10 pound that Ewing has lost is a promise. The fact that Ewing also benefit from the weight loss does not matter.

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