1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dsp73
3 years ago
6

Due to recent political and economic events, general prices of goods and services are expected to increase significantly over th

e next five years. You were about to purchase a five-year bond. You now require a higher return on the bond than you did before you found out about these expected price increases.
Determine which of these fundamental factors is affecting the cost of money in the scenario described:

a. Inflation
b. Time preferences for consumption
c. Risk
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

a. Inflation

Explanation:

In the context of economics, inflation refers to the increase in the price of goods and services

Moreover,  we also know that

(1 + Nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)

According to the given situation, it is mentioned that The general goods and services prices are expected to rise substantially over the next five years which represents the concept of inflation

Hence, the option a is correct

You might be interested in
As a student of Business Ethics and a managing director of a multinational company, discuss five (5) factors you will consider i
rewona [7]

Communication, ethics, conflict management, learning, and inclusion are some issues to consider when leading a multicultural and diversified workforce in Ghanaian business organizations.

<h3>How do you lead a multicultural team?</h3>

In order to foster a culture that celebrates variety and individuality, it is crucial that there be a number of rules and procedures that concentrate on organizational ethics. The manager must be aware of the requirements of the teams, encourage learning, and include the staff in organizational procedures.

Therefore, the sharing of knowledge, learning, and creativity can benefit from a diverse culture.

To learn more about the multicultural team here: brainly.com/question/27249388

#SPJ10

4 0
2 years ago
A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time p
3241004551 [841]

Answer:

The answer is aging of accounts receivable method.

Explanation:

This method helps accountants in determining how much of a company’s account receivables would not be collected. This is related to unpaid invoices of a company’s customers. Though invoices usually have due dates, according to the company, customers who haven’t paid even after the due date has passed must be calculated using this method for more accurate accounting reporting.

8 0
3 years ago
which of the following countries had the highest per capita GDP in 2013? Iran, Malaysia, Poland, Turkey
Mazyrski [523]

Answer: Poland

Among the four countries, Iran, Malaysia, Poland and Turkey, Poland had the highest per capita GDP in 2013 and ranked 61st with $21,00 per capita GDP.  Malaysia ranked 74th at $16,900. Turkey ranked 85th at $15,000 and Iran ranked 97th at $13,100.


7 0
3 years ago
How did huge industrial trusts develop in industries such as steel oil and banking, what was the effect on the economy?
aalyn [17]
The huge industrial trusts developed in industries such as steel and oil because there was a lot of competition to make the most profit and to be the best factory. Oil was a huge cooperation because it fueled the trains. Smaller bothersome rival companies would join bigger ones to create a monopoly. Standard oil owned by Rockefeller was a vast power and the word trust came to be generally used to describe any large scale business combination. Steel became a large industry for the fact that it was a strong metal that built the trains and tall sky scrappers. Also steel was used to build the transcontinental rail roads The Bessemer process came about which was a method of making cheap steel. It made the economy a more cut throat environment of dog eat dog and became ruthless. The economy was about power and money and was very greedy. Immigrant workers were employed with very low wages and worked laboriously many hours a day. Their effect on the economy was to create large <span>monopolies, their effects were tremendous.</span>
3 0
3 years ago
When the effective-interest method of amortization is used for a bond premium, the amount of interest expense for an interest pe
gayaneshka [121]

The amount of interest expense for an interesting period is calculated by multiplying the carrying value of the bonds at the beginning of the period by the effective interest rate.

Amortization is an accounting approach used to periodically decrease the ebook value of a loan or an intangible asset over a fixed time frame. Concerning a mortgage, amortization focuses on spreading out mortgage bills through the years. When applied to an asset, amortization is similar to depreciation.

Amortized price is an accounting approach in which all economic properties need to be suggested on a stability sheet at their amortized fee that is identical to their acquisition general minus their essential payments and any reductions or charges minus any impairment losses and change variations.

Input the corresponding values in cells B1 thru B3. In cellular B4, input the components "=-PMT(B2/1200, B3*12, B1)" to have Excel routinely calculate the monthly charge. As an example, in case you had a $25,000 mortgage at 6.5 percent annual hobby for 10 years, the month-to-month fee could be $283.87.

Learn more about the method of amortization here brainly.com/question/10561878

#SPJ4

5 0
2 years ago
Other questions:
  • The company’s CEO repeatedly says that "employees are our most important resource," but many managers treat employees disrespect
    12·1 answer
  • Sergio's employer covers 80% of the cost of a $3300-per-year health insurance plan and 70% of the cost of a $1400-per-year disab
    11·2 answers
  • When preparing government-wide financial statements at the end of the fiscal year, Meen County recorded an adjusting entry for s
    15·1 answer
  • Which one of the following best represents the transaction motive for holding cash? A. Buying extra inventory in response to an
    5·1 answer
  • The december 31, 2015, balance sheet of maria's tennis shop, inc., showed current assets of $1,205 and current liabilities of $9
    14·1 answer
  • What is a business?
    5·1 answer
  • Based on the following passage, what force can you infer is responsible for causing an implosion if not pressure?
    8·2 answers
  • Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inven
    10·1 answer
  • The West Division of Cecchetti Corporation had average operating assets of $240,000 and net operating income of $42,200 in Augus
    10·2 answers
  • What influences the behavior of employees and gives confidence to the strategic teams that make things happen?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!