Answer:
Current yield = <u>Annual coupon</u>
Current market price
Current yield = <u>$75</u>
$1,020
Current yield = 0.0735 = 7.35%
The correct answer is D
Explanation:
Current yield equals annual coupon divided by the current market price of the bond.
Answer: See explanation
Explanation:
Trade restrictions simply means a way of protecting the local industries. This can be through imposition of tariffs on foreign goods, use of quota etc. The importance of trade restrictions are:
1. Trade restrictions are important in the protection of the infant indutries, that is, the young industries in a country that are just growing.
2. Trade restrictions is necessary to prevent dumping of goods. This mean selling of goods at lower prices or of low quality in a country. This gives such products an unfair advantage over other goods produced in the home country.
3. Trade restrictions is vital on order to protect the strategic indutries.
4. Trade restrictions is also vital in order to protect the jobs of the people in the country. When goods are imported rather than supporting local businesses, this can lead to unemployment as workers will lose their jobs.
Answer:
The answers are:
- A change in sales mix from high-margin to low-margin items may cause total profits to decrease despite an increase in total sales.
- A change in sales mix from low-margin to high-margin items may cause total profits to increase despite a decrease in total sales.
Explanation:
A company's profit is affected by its sales mix. Profits will always be higher if high margin products or services make up a large proportion of the sales mix. Even if total sales decrease, due to a decrease in the sales of low margin products, the company's profits might increase if more high margin products are sold.
For example, a Ford sells mostly pick up trucks, SUVs and cars. The profit margin from car sales is very low, so in order to make a larger profit the company must focus on selling more pick up trucks and SUVs. Even if the company losses market share by not selling cars, it will make more money by selling high margin products.
Answer:
a framing bias
Explanation:
Framing bias occurs when a person chooses an option based on whether it was presented in positive or negative terms. There is tendency to avoid risk on positive presentation, and seek risk on negative presentation. It is a form of cognitive bias.
On this scenario Bayram is to choose between two investments. One was said to have 30% chance of success and the other a 70% chance of failure.
Although both investments have the same risk and benefit Bayram chose the one that was presented as 30% chance of success.
This phenomenon of choosing based on positive presentation is called framing bias.
