Answer:
a. The bond’s expected capital gains yield is zero.
Explanation:
Since the bonds are issued at par so capital gains yield is zero.
Answer:
Extended decision making
Explanation:
Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.
So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.
Answer:
C) there is at least one fixed factor of production.
<u>Multiple-choice options</u>
A) there is increasing scarcity of factors of production.
B) the price of extra units of a factor is increasing.
C) there is at least one fixed factor of production.
D) capital is a variable input.
Explanation:
he law of diminishing marginal returns cites that adding extra input while maintaining the others fixed will cause the overall output to decrease . Adding one more production input while keeping the rest intact decreases the marginal returns and increases the average production cost.
The law only applies where there at least one fixed input. When the firm uses more of the variable input, the firm's marginal product will eventually decrease.
Answer:
So interest payment will be $8000
Explanation:
We have given face value of the bond = $100000
And bond is issued for $93500
Standard rate of interest = 8 %
And market rate of interest = 10 %
We have to find the interest paid
Interest payment will be given by
Interest payment = face value of bond × standard rate of interest
= $100000×0.08 = $8000
So interest payment will be $8000
