Answer:
b) fall to 8 percent.
Explanation:
First, irrespective of the duration of the bond, if the price is equal to the bond's face value, it means that the coupon rate is equal to the yield to maturity (YTM). 
Initial YTM = 10%
Since this is a perpetually coupon paying bond, you use PV of perpetuity  to find the rate;
PV = Coupon PMT / rate
Given PV as $1,250, new annual rate would be;
1,250 = 100/rate
solve for rate by cross multiplying;
1,250rate = 100
divide both sides by 1,250
rate = 100/1,250
rate = 0.08 or 8%
Therefore, the
 interest rate would fall to 8 percent.
 
        
             
        
        
        
Answer:
$47
Explanation:
Given that,
Required return = 11.00%
Expect a growth rate = 6.00%
Expected to pay a dividend next year = $2.35
Stock Price: 
=  Dividends (Div)  ÷  (Expected Return (R)  -  Dividend Growth Rate (G))
= $2.35 ÷ (11% - 6%)
= $2.35 ÷ (5%)
=  $47
Therefore, the current fair price for the stock is $47.
 
        
             
        
        
        
Answer:
• Advertising undermines competition.
Explanation:
Oligopoly is a market structure which contains the small kind of firms in that it have non-significant influence. The concentration ratio defines the highest firms market share
As per the given options, the advertising impact the choice for the consumer in an oligopoly at the time when advertising undermines the competition
Therefore the option b is correct
And, the rest of the options are wrong
 
        
             
        
        
        
Answer:
$13,800
Explanation:
Static budget report for the second quarter and for the year to date
 
PRODUCT LINE:	BUDGET; ACTUAL;	DIFFERENCE;	REMARK
Guitar:The Edge	380,800	394,600	
13,800 favorable
Production line = Guitar:The Edge
Budget =$380,800
Actual=394,600
Difference = 13,800
Remark : Favorable