The adjustment that need to be made is <span>Value of the feature would be subtracted from the sales price of the comparable property in order to determine the worth of the property. without the features,
By doing this, we could determine the true market valuation of the property that being transacted.</span>
Answer:
less desirable to other investors
Explanation:
<u>Given</u>: Current fixed coupon rate 5%
Market rate of interest 5%
New Market Rate of Interest 6%
Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:
wherein, C = Coupon rate of interest
YTM = Market Rate of Interest or interest rate in the economy or investor's expectation
n= Years to maturity
RV = Redemption value
In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.
Thus, now the bond would be less desirable to other investors.
Answer:
The correct answer is True.
Explanation:
Fiduciary assignments that have as their object the realization of investments, the administration of goods or the execution of activities related to the granting of guarantees by third parties to ensure the fulfillment of obligations, the administration or surveillance of the goods on which the guarantees fall and the carrying them out, subject to the restrictions established by law; act as transfer agent and register of securities; act as a representative of bondholders; act as trustee, curator of property or as depositary of sums recorded in any court, by order of judicial authority or by determination of persons who have legal power to designate them for such purpose.
Fiduciary companies may carry out investment trust operations through commercial fiduciary contracts, concluded in accordance with legal formalities, or through fiduciary orders.
Fiduciary activities are not reported in the government-wide financial statements
They may form ordinary common investment funds integrated with monies received from various constituents or adherents for this purpose.
Answer:
The correct answer is option b.
Explanation:
Inflation refers to the continuous and sustained growth in the general price level. As the price level rises, it reduces the purchasing power or value of cash balances held by the consumers to reduce. This causes real income to decline.
A certain level of inflation is desirable in an economy to promote growth but a high rate of inflation is harmful. Inflation can be of several types such as
- Demand-pull inflation
- Cost-push inflation
There are several measures used to calculate inflation, for instance, the consumer price index. To correct inflationary pressures, a government uses contractionary fiscal and monetary policy.
Answer:
The price should be increased to achieve a balance between supply and demand.
Explanation:
If visitors have to wait long for lift, this suggests that the demand is not matching the supply. In fact demand seems to be higher than supply which causes long wait for lift. An increase in price will cause the demand to fall and hence the supply will meet the demand and would result in less waiting for lifts.
