Answer:
The multiple choices are:
a. $1132
b. $1044
c. $ 962
d. $1153
e. $ 988
The correct option is C,$962
Explanation:
The price a rational and prudent investor like me would be willing to pay for the bond today is the present worth of future cash inflows receivable from the bond issuer,which comprises of annual coupon interest and the face value at maturity.
=-pv(rate,nper,pmt,fv)
rate is required rate of return expected by investor of 10%
nper is 5 years since the investor intends to hold the bond for 5 years
pmt is the annual coupon interest=$1000*9%=$90
fv is the face value of $1000
=-pv(10%,5,90,1000)=$962.09
The current price is $962
Answer:
The correct answer is D. increase; decrease.
Explanation:
Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.
A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.
The speculation is based on the forecast and the perception, so that the speculator can also be wrong if he does not correctly anticipate the evolution of future prices, so he will have to sell cheap something he bought expensive. The speculative market therefore rewards those who know how to predict.
Through transient actions like trade fairs and event sponsorships, sales promotion is a tactic that encourages customer purchase and dealer engagement.
<h3>
What is Sales Promotion?</h3>
A transitory campaign or offer is used by a company as part of a sales promotion to raise interest or demand in its product or service.
A company may decide to utilize a sales promotion (or "promo") for a variety of reasons, but the main one is to increase sales. Sales increases could be required to meet a quota as a deadline draws near or to spread word of a new product.
Let's examine several sales promotion types in more detail, as well as the advantages and disadvantages of adopting each style of promotion.
12 different categories of sales promotions exist. Although not all of them are appropriate for every industry, product, or service, each one offers distinct opportunities to increase sales and forge stronger bonds with clients by utilizing various sales psychology techniques. Each presents a comparison of sales methodologies and offers an unusual perspective on spin selling.
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It is false that the market rate is used to calculate the actual cash payments made to bondholders rather it is the economic price for goods and services that is offered for them in free market or market place. It is also called a going rate, the market value or market price are equal only under conditions of market equilibrium and rational expectation.
Answer:
She filled for bankruptcy last year.