Answer: The value of the bond will decrease
Explanation:
The Interest rate has a negative inverse relationship with the value of a bond
. When the interest rate increases the value of a bond decreases and when interest rate decreases the bond value increases. Bonds with low coupon rates tend to be more sensitive to interest rate changes this is known has coupon effect.
Bonds with long time frame (long term bonds), they also tend to be are more sensitive to changes in the interest rate this is known has the maturity effect. Therefore a change in the interest rate will cause a huge change in the value of a Bond with low coupon rate and long time period.
The Bond is a 20 year Bonds which qualifies it to be a long term bond and the coupon Rate is 7%, with these facts and knowing that long term bonds are more sensitive to interest rate changes we can conclude that the sudden increase of the interest rate to 15% will cause a huge decrease in the value of the bond
Answer:
Compound interest; interest.
Explanation:
Compound interest can be defined as the interest that the bank pays you on the principal plus on the interest that you earned the preceding year. Thus, it is simply calculated by adding an interest to the initial principal i.e compounding the interest rather than withdrawal.
Mathematically, compound interest is given by the formula;
Where;
A is the future value.
P is the principal or starting amount.
r is annual interest rate.
n is the number of times the interest is compounded in a year.
t is the number of years for the compound interest.
His broker must register the team name that complies with the new regulations with TREC before he may use it in advertising.
<h3>What is a team name?</h3>
- The term "team name" refers to a name that is employed by one or more license holders that are sponsored by or connected to the same broker but are not the broker's actual name or an assumed business name.
- Team or group must be at the end of team names.
- Terms in team names that suggest the club is providing brokerage services independently of the broker are prohibited.
- Brokerage, corporation, and associates are a some of the forbidden words.
- As long as the team name ends with the words team or group, the phrases realty or real estate are permissible in the team name.
<h3>What is TREC?</h3>
- The governmental entity in charge of overseeing real estate practices in the state of Texas is called the Texas Real Estate Commission.
- The organization's main office is located in Austin at 1700 North Congress.
- TREC is made up of nine people who the governor appoints with the support of the Texas Senate.
Learn more about TREC here:
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Answer:
Reconciled balance for both bank and cheque book statement is $2,572.51
Explanation:
To find the reconciled balance, we start of with reconciling the bank statement with cheque book statement
Bank statement
Balance as per bank statement
$2009.32
Add: deposits in transits
$1,197.87
Less: outstanding checks
($310.18 + $324.50)
Reconciled balance
$2,572.51
Cheque book
Balance as per cheque book
$2,469.31
Add: interest earned
$109.20
Less: service charge
($6)
Reconciled balance
$2,572.51.
The first once is c and and is a
