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Charra [1.4K]
1 year ago
12

he price of a bond having no expiration date is originally $8,000 and has a fixed annual interest payment of $800. a fall in the

price of the bond by $3,000 will provide a new buyer of the bond an interest rate of
Business
1 answer:
xxMikexx [17]1 year ago
6 0

Based on the information given the interest rate yield to a new buyer of the bond is 16 %.

Given,

Annual Interest payment = $800

After bond price decreases by $3,000, new bond price = $8000-$3000 =$5000

Bond price is the discounted present value of the future cash flow that a bond will produce. It describes the total of the present values of all anticipated coupon payments and the par value at maturity.

Using the formula,

New interest rate = Interest paid on bond / New bond price

= $800 / $5000= 0.16 = 16%

Therefore, the interest rate yield to a new buyer of the bond is 16 %.

To learn more about Interest Rate visit:

brainly.com/question/15282698

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Lena invested her savings in two investment funds. The $6000 that she invested in Fund A returned a 6% profit. The amount that s
Nostrana [21]

Answer:

The amount that Lena will invest in fund B would be $4000.

Explanation:

Given information -

Amount invested in fund A - $6000

Return earned on fund A - 6%

Let us assume amount invested in fund B be x

Return earned on fund B - 1%

Return on both funds together - 4%

Let us assume the total amount of fund invested be ($6000 + x)

Now using simple equation , we will take out the value of x which is the amount invested in fund B -

$6000 X 6% + x X 1% = 4% ( $6000 + x )

= $360 + .01 x = $240 + .04 x

= $360 - $240 = .04 x - .01 x

$120 = .03 x

x = $120 / .03

= $4000.

4 0
4 years ago
For any given price, a firm in a competitive market will maximize profit by selecting the level of output at which price interse
KonstantinChe [14]

Answer:

The answer is C

Explanation:

To maximize profits in a perfectly competitive market, firms or businesses' marginal revenue must equal to marginal cost (MR=MC).

Also price must equate marginal cost(which is the additional cost incurred in the production of one more unit of a good)

In perfect competition, P = MC = MR.

But in monopolistic Competition or monopoly P > MC

5 0
3 years ago
Read 2 more answers
Resource pricing is important because:
Marysya12 [62]

Resource pricing is important because resource prices are a major determinant of money incomes.

The greater the call for, the higher the charge, and vice versa. when demand is excessive, only the companies willing to pay the fee get the resources, and they will best be able to afford the sources via generating worthwhile products or services that clients are inclined to pay better expenses for.

The pricing of natural resources at stages that reflect their blended economic values and environmental values.

Adjustments in useful resource fees have an effect on the price of manufacturing. A higher price approach higher price and a decreased price method lower the cost. changes in manufacturing fees then affect the prices that dealers are willing to just accept to promote goods and services, which in the end influences the general rate level.

Learn more about Resource pricing here: brainly.com/question/24266033

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8 0
2 years ago
When a product reaches the decline stage of the product life cycle, a firm has two choices. One choice involves product deletion
damaskus [11]

Answer: (E) Harvesting

Explanation:

 The harvesting is one of the type of marketing strategy that retain the goods and the services in the production line and also reduces the market cost or spending on the specific products.

The harvesting strategy is also known as the exist strategy in the market and the main objective of the harvesting strategy is that it maximize the product profits and also has the opportunity for trading in an organization for distributing the shares.

Therefore, Option (E) is correct.  

6 0
3 years ago
A store that sells books and a store that sells tools are what type of competitors? (Select the best answer.) Indirect competito
boyakko [2]
These are known as indirect competitors
3 0
4 years ago
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