1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fomenos
1 year ago
14

assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 pe

rcent. if the required rate of return suddenly changes to 15 percent, what is the price elasticity of the bond?
Business
1 answer:
Gelneren [198K]1 year ago
3 0

The price elasticity of the bond, based on the years to maturity and the required rate of return is -0.494

<h3>How to find the price elasticity of he bond?</h3><h3 />

First, find the new price of the bond:
= 1, 000 / ( 1 + 15%)⁵

= $497

The change in price:

= (497 - 567) / 567

= -12.3%

Then find the percentage change in the required rate of return:

= (15 - 12%) / 12

= 25%

The price elasticity of the bond is:

= -12.3% / 25%

= -0.494

Find out more on price elasticity at brainly.com/question/5078326

#SPJ1

You might be interested in
Verizon Manufacturing Company spent $400,000 in 2019 to inspect incoming components. Of the $400,000, $240,000 is fixed appraisa
eimsori [14]

Answer:

The question is incomplete, the option include:

  • $20,000 decrease.
  • $45,000 decrease.
  • $80,000 decrease.
  • <em>$160,000 decrease.  is Correct</em>
  • $320,000 decrease.

Explanation:

1. In 2019 the number of finished units with internal faults = $400,000 completed units * 0.05 = $20,000.

2. In 2020 the number of finished units with internal faults = $20,000* (1 -0.1) = $18,000.

3. In 2020, the projected cost of internal failure= $18,000 * $80= $1,440,000;

4. In 2019 the expense of internal failure= $20,000 * $80 = $1,600,000.

5. Projected shift in the cost of internal failure = <em><u>$1,600,000 - $1,440,000 = decrease of $160,000</u></em>

4 0
3 years ago
__________ is a narrative presentation analyzing the internal and external environment of an organization and its publics as it
Basile [38]

Answer:

situation analysis

Explanation:

Hope my answer helped :)

8 0
2 years ago
December 31 Total assets Total liabilities
Neporo4naja [7]

Answer:

Net Income or Loss : a. 2019 = $53000  ; b. 2020 = $4000 loss ; c. 2021 = $43000

Explanation:

Assets - Liabilities = Capital  (Closing/Opening)

458000 - 317000 = 141000 (2019 Closing Capital)

Profit = Closing Capital - Opening Capital + Drawings - Additional Capital

A.  2019 Opening Capital = 100000 (Given)

2019 Closing Capital = A - L = 458000 - 317000 = 141000

2019 Profit = CC - OC - D + AC = 141000 - 100000 + 12000 =  53000

B. 2020 opening capital = 2019 Closing Capital = 141000

2020 closing capital = A - L = 538000 - 367000 = 171000

2020 Profit =  CC - OC + D - AC = 171000 - 141000 - 34000 = 4000 Loss

C. 2021 opening capital = 2020 closing capital = 171000

2021 closing capital = A - L = 668000 - 467000 = 201000

2021 Profit = CC - OC + D - AC = 201000 - 171000 + 25000 - 12000 = 43000

6 0
3 years ago
What is the positive impact of Commerce subject on our society?​
kkurt [141]

Answer:

E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business

5 0
2 years ago
The markup on a video game is 15% of the sale price. If the video game sells for $58.82, what was the cost (in $)? (Round your a
Tanzania [10]

Answer:

$51. 15

Explanation:

The selling price is $58.82

The mark-up is 15% of the selling price.

The cost price is ???

The $58.82 is 115% of the cost price.

the cost price is 100%

cost price

= 58.82/115 x 100

= $0.5114 X 100

=$51. 15

5 0
3 years ago
Other questions:
  • To print the Adjusted Trial Balance, select: Multiple Choice Company Center &gt; Accountant &amp; Taxes Company Center &gt; Comp
    13·1 answer
  • Choose the best answer:
    7·1 answer
  • Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer pro
    15·1 answer
  • Mr. and Mrs. Haley are purchasing beachfront property in an upscale development. The home comes equipped with all furnishings. T
    6·1 answer
  • Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it i
    13·1 answer
  • Ella had been using an imported brand of shampoo for several years, but she could no longer find it anywhere. As she was conside
    6·1 answer
  • A human resources department could assume the staffing function of management. <br> True <br> False
    13·1 answer
  • The pattern in which a lab scope shows all the cylinders firing in sequence is called the:________
    6·1 answer
  • True or False: It was better for the united states not to receive this foreign investment because it decreases economic growth
    5·1 answer
  • Please help answer economics questions for 100 points and brainliest
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!