Inverse; rise; drop; drop; rise
It is a fact that there is an inverse relationship between interest rates and bond values in the secondary market. When interest rates rise, bond prices drop, and when interest rates drop, bond prices rise.
<h3>What is the relationship between interest rate and bond values?</h3>
Bond prices and interest rates go hand in hand. Bond prices typically decline as borrowing costs increase (when interest rates rise), and vice versa.
Most bonds have a fixed interest rate that increases in attractiveness when interest rates decline, increasing demand and bond price.
In contrast, a bond's price will drop if interest rates increase because investors will no longer value the lower fixed interest rate it offers.
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Answer:
A. They can be in electronic or paper form.
Answer:
32
Explanation:
Using Formula
Cost + (Cost*Margin) = Selling Price
Cost is not known...
Cost (1 + Margin) = Selling Price
Cost = Selling Price / 1 + Margin
Here, Margin is 0.45 of cost and selling price is 46.4
Cost = 44.4 / 1.45
Cost = 32
They could provide internships towards graduates to allow them to acquire working experience.
They could also provide training to help graduates have an understanding of what they are expected of in the workplace.
Answer:
a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
Explanation:
<em>Price elasticity of demand(PED) is the degree of responsiveness of demand to a change in price.</em>
<em>Where a percentage change in price produces a more than a proportional change in quantity, we say the product is</em><em> price elastic.</em><em> On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is </em><em>price inelastic</em>
PED is computed as follows:
PED = % change in quantity /% change in Price
So we can apply this formula to this question
0.5 = m/10
m = 0.5 × 10
m = 5.
m= 5%
From the computation above , it is deduced that a 10% increase in price will reduce the demand and total expenditures on good X by 5%.
