Answer:
<em>The current market price for the bond is $903.05</em>
Explanation:
<em>Steps taken to arrive at the current market price of the bond</em>
<em>Recall PV=present value</em>
<em>face value=$1000</em>
<em>percent bond=4.5,</em>
<em>A semiannual interest payments of 7 years, yielding a maturity rate of=6.23%</em>
<em>PV = [(.045 × $1,000)/ 2] ×{(1 - {1 / [1 + (.0623/ 2)]14}) / (.0623 / 2)} + $1,000 / [1 + .0623 / 2)]14
</em>
<em>PV = $903.05</em>
Answer:
The answer is D.
Explanation:
The correct answer is D. universally true for all markets
Other things being equal, as the price of goods and services increase, producers/firms tend to produce more(this is the popular law od supply) inorder to take advantage of the high revenue.
Unlike demand, for supply, price and quantity supplied are directly related.
The answer is $594.50, hope this helped you