Answer:
<u>Introduction.</u>
Explanation:
<u>The introduction </u>phase of a product life cycle refers to the moment when the product has completed its development and is ready to be placed on the market.
This phase has as its main characteristics the low sales volume and consequently little or no profitability. Therefore it is necessary that in this early phase of the product life, the organizational efforts should be focused on marketing and promotion actions, with the intention that the customers will be attracted to know your product and from that there will be the product growth in the market and so start generating profits.
Explanation:
Product differentiation is the means used by a firm in a monopolistic competitive market with many firms selling similar products to differentiate its product from that of other firms
Answer:
Option (d) is correct.
Explanation:
Given that,
Real risk-free rate of interest, r* = 3%
Inflation is expected to increase and the maturity risk premium is expected to be 0.1(t - 1)%.
where,
t is the number of years until the bond matures
It is given that expected inflation increases and maturity risk premium also increases with increase in the number of years. Hence, the yield curve is upward sloping.
The slope of the yield curve tells us about the direction of the short term interest rate in the near future. If the curve is downward sloping then this would indicates that all the financial markets expects a lower interest rate in the near future.
On the other hand, if the curve is upward sloping then this would indicates that all the financial markets expects a higher interest rate in the near future because central bank come out with a contractionary monetary policy. This means that central bank have to increase interest rate to decrease the money supply in an economy.
National labor relations act
Answer:
The present value of the bond.
Explanation:
The present value of a bond will change when interest rate changes. The present value is the price at which you will buy the bond. Interest rate is also known as the yield to maturity (YTM). This interest rate has an inverse relationship with the price; meaning, if YTM increases, the price of the bond will decrease and vice versa.
Expected cashflows are the recurring coupon payments which are usually fixed amount in the case of a coupon paying bond. For this reason, they do not change with changes in interest rate.
The maturity value also known as the Face value or Par value is fixed and does not change with changes in interest rate.