The current market price of the bond is 103% of their par value
What percentage is the bond price compared to its par value?
The market bond convention is to quote the price at which the bond can be bought or sold in the market as a percentage of its par value.
The simple approach is to add a percentage sign to any bond price you are given, which means that 97 price means the bond price is 97% of par value.
In the same vein, 103 price means the quoted price of the bond is 103% of the par value of the bond/
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Answer: 5
Explanation:
The velocity of circulation is the average number of times that each dollar can be used for the purchase of goods and services in a year.
From the information given in the question, the velocity of circulation will be:
= Nominal GDP / Quantity of money
= $2000 / $400
= 5
Therefore, the velocity of circulation is 5.
Answer:
they have an opportunity to exploit network effects and positive feedback loops
Explanation:
The first mover advantage refers to competitive advantages that can be achieved by a firm that first enters a market or launches a new product first. E.g. Volkswagen has a first mover advantage in China because it was the first foreign car manufacturer to successfully a car factory there. Another type of first mover advantage would be the ones obtained by Apple for launching the first smartphone.
Network effects refers to a good or service becoming more valuable because more people purchase or use them, e.g. social media apps.
Positive feedback loops occurs when a company's output is used as a positive input in the productive system, e.g. when a company uses information gathered by customer service (CRM) to improve the products or services it offers.
Answer: Seller has right to use proceeds to settle the loan.
Explanation:
The Seller has the right to use the proceeds from the sale of a house to settle debt and this is what this seller is offering. The seller also suggests an escrow account which would significantly reduce the risk of default by the seller after being paid.
The seller can argue this in court and have a fair chance of winning because they fully disclosed the fact of the loan to the buyer and told the buyer how they planned to settle it, method which they had the right to use when settling debt of this nature.
