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:
$7,816.9943
Explanation:
Using the high-low method;variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)
= $16,700 - $15,850 / 951 - 860
= $850 / 91
= $9.340659340659341
= $9.3407
Hence, total fixed cost = $16,700 - ($9.3407*951) = $16,700 - $8,883.0057 = $7,816.9943
A communism political system favors an economic structure in which means of production are owned and monitored by the government. A communist economy means that the government will control the majority of factors centered around production. They will determine where resources should be used and what type of goods and services will be produced.<span> </span>
Answer:
I strongly believe that the correct answer is B. Im going to give an example. if we take into account a company like Honda produces 4000 units, for example Mercedes Benz produces 7000 units, this is very important for welfare economics which tries to put values on consumption.
Explanation:
The increase of the new SUV from $24,000 to $26,000 after the agreement illustrates a low-balling technique.
<h3>What is a low-balling technique?</h3>
This is a tactics used when the persuader gets a person to commit to a low offer that they have no intention of keeping and then, the price is suddenly increased.
Hence, the increase of the new SUV from $24,000 to $26,000 after the agreement illustrates a low-balling technique.
Read more about low-balling technique
<em>brainly.com/question/14565653</em>
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