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Llana [10]
3 years ago
12

A bonds price and its yield to maturity are inversely related because:________.

Business
1 answer:
xenn [34]3 years ago
6 0

Answer: increase in the yield to maturity will lower a bond's coupon rate and hence its price.

Explanation:

The yield to maturity is the percentage of return that'll be paid on a bond as long as the investor holds the security till it matures.

It should be noted that the price of a bond moves inversely with the yield to maturity as a rise in the yield to maturity leads to a reduction in the bond's price and a reduction in the yield to maturity will bring about increases in price of a bond

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The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen
Ad libitum [116K]

Answer:

A lower equilibrium point due to decreased investment, decreased real interest rate and decreased level of savings

Explanation:

The economic graph that is referred to in the question in referred to as the IS-LM curve which depicts the intersection of the IS (Investment-savings curve) with the LM (liquidity preference-money supply) curve. This intersection determines thr equilibrium between real interest rates and the output/consumption at that level of interest rate. The IS curve is downward sloping while the LM curve is upward sloping.

The tax law change makes the investment less attractive which will cause the IS curve to pull inwards (i.e a shift to the left). This shift to the left essentially reduces the level of investment thereby lowering the demand for money for investment. This reduction in demand causes the real interest to decrease. At this decreased interest level, there is a decrease in the the level of savings (because of the lower return that is available on money saved). Therefore the impact will result in a new lower equilibrium at which the real interest rate and the levels of saving and investment will be lower than the original equilibrium level.

8 0
3 years ago
A state may not discriminate against citizens of other states, and each must give "full faith and credit" to the official acts o
julsineya [31]
<span>The answer is "states". In the United States Constitution, Article Four defines the relationship between states, and between the states and the federal government. This "full faith and credit" includes the public acts, records and court proceedings of other states. States must recognize and respect decisions of each state's courts.</span>
8 0
3 years ago
Why are high seas fisheries classified as common pool resources? Select one: a. It is possible to exclude a person from the high
frez [133]

Answer:

Letter D is correct!

Explanation:

The letter D is correct because deep sea fishing is a resource that thousands of people have access to and even depend on for their survival. What fits this activity as a commonly owned resource 1, which are natural or artificial activities where the ability to exclude users is not remote. This becomes a problem as there are no resource constraints for each user, ie in the case of deep sea fishing, when a user fishes a fish, it is not available for the other to fish, which would lead to conflicts between management of such activities, so it is necessary to classify as a private activity and then allocate policies to adapt better management to all users.

7 0
3 years ago
Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last
boyakko [2]

Answer:

The actual return on investment was 16.67%

Explanation:

the Return on Investment, will be the net income copared with the own funds (equity). So, we will compare the 50,000 net income with the owner's equity 300,000

50,000/300,000 = 0.1667 = 16.67%

The return on investment is 16.67% This means for every dollar of equity the comany earn 16.67 cent

It also means the company will return their entire investment in:

1/ROI = 1/0.166666 = 6 years

8 0
3 years ago
An annual report for International Paper Company included the following note:The last-in, first-out inventory method is used to
Vilka [71]

FIFO method :

Amount of Net Ducome GA per F1 Fo

Net Income (After Tan) $2144 mule

Add Income Tan Changed

(2144 X 100/70) X 30%. 76                                                   $918.857 rude

                                                                                              $3062.857 nis                                                          

Add Closing Inventory Incrare as bei FIFO                              293

Lesso Open Deventory Ducres asper FIFO                        (290 nulls)

Income before Taxes                                                            3065.857 null

Income Taxes 30 y.                                                               (919.757 null)

Net Income                                                                            2146. to Pullen

FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.

FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.

Learn more about FIFO at

brainly.com/question/24938626

#SPJ4

6 0
1 year ago
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