When economists refer to "demand," they are speaking of<u> a schedule of amounts of a product that buyers would purchase at alternative prices in a given time period.</u>
Answer:
The cost of goods sold for next month is expected to be $202,500
Explanation:
Given that,
Sales budget = $450,000
Cost of Good sold = 45% of sales
Opening inventory = $20,000
Ending inventory = $24,000
Beginning accounts payable = $206,500
Since, in the given question, it is mentioned that the cost of good sold is 45% of sales.
So,
Cost of Goods Sold (COGS) = 0.45 × $450,000
= $202,500
Hence, the cost of goods sold for next month is expected to be $202,500
Note: we don't considered other things which is mentioned in the question.
An Interest Only Strip holder benefits from higher interest rates than expected prepayments, and a Principal Only Strip holder benefits from lower than expected prepayments and interest rates.
<h3>What is the difference between Principal Only (PO) Strips and Interest Only (IO) Strips?</h3>
The holders of PO strips benefit when the investment period is cut short because they will only ever see the face value of their investment.
In order for the mortgage holders in the pool to continue making payments (including interest) on their current loan rather than attempting to refinance into a new one, they want to see interest rates at the same level or higher.
Therefore, A principal only strip holder benefits from lower than anticipated prepayments and interest rates, while an interest only strip holder benefits from higher interest rates than anticipated prepayments.
Learn more about the interest rates, refer to:
brainly.com/question/13324776
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Answer:
less desirable to other investors
Explanation:
<u>Given</u>: Current fixed coupon rate 5%
Market rate of interest 5%
New Market Rate of Interest 6%
Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:
wherein, C = Coupon rate of interest
YTM = Market Rate of Interest or interest rate in the economy or investor's expectation
n= Years to maturity
RV = Redemption value
In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.
Thus, now the bond would be less desirable to other investors.
