Answer
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Explanation
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Answer:
C) The coupon rate remains at 8%
Explanation:
Here are the options to this question :
A) The coupon rate decreases to 8%
B) The coupon rate increases to 10%
C) The coupon rate remains at 8%
D) The coupon rate remains at 9%
A bond is a debt instrument. Bond holders receive fixed coupon payments.
the coupon payments do not vary with market interest rate. It remains fixed based on the rate set on the bond indenture.
If the coupon payment is $80 and the face value of the bond is $1000, the coupon payment is 8%. the coupon rate remains fixed at 8%
Answer:
elastic
16%
32%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Answer:
$320 left for me after all taxes have been paid.
Explanation:
Individual Tax is paid on dividend received from the investment in the shares. The corpporation declare the dividend after deducting the corporate tax.
Amount of Earning = Number of shares x Per share earning = 100 shares x $4per share = $400
Earning After tax = Amount of Earning x ( 1 - Individual Tax rate )
Earning After tax = $400 x ( 1 - 0.20 )
Earning After tax = $400 x 0.8
Earning After tax = $320