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34kurt
3 years ago
11

Which are two feature of a bond

Business
2 answers:
xz_007 [3.2K]3 years ago
5 0
D. can be flipped for profit and E. has a maturity date
Scrat [10]3 years ago
4 0

<u>The coupon or yield of a bond</u> <em><u>is the interest rate that the issuer agrees</u></em> <u>to pay to its bondholders. </u>

<u>The due date is the date on which the bail bond matures and must be repaid to the lenders in full</u>. <em><u>The maturities of corporate bonds usually range between one and five years, and some bonds mature in 10 or even 30 years. </u></em>

<em><u>The answers are</u></em>: -<u>a.- Pays a coupon rate</u>. <u><em>and</em></u> -<u>e.- Has a maturity date.</u>

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If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:
AlekseyPX

The question is incomplete. The complete question is stated below.

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

a. $400 increase in consumption spending

b. $75 increase in consumption spending

c. $425 increase in personal saving

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Answer:

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.

Explanation:

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,

MPC = Change in consumer spending / Change in income

0.85 = Change in consumer spending / 500

500 * 0.85 = Change in consumer spending

Change in consumer spending = $425

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.

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