Answer: B. will cause the total cost of borrowing to be less than the bond interest paid
Explanation:
It should be noted that when a bond is sold above the face value, this will result into the total cost of borrowings to be less than the bond Interest that was paid.
The reason for the above is due to the fact that the borrower will not be required to repay the bond premium when the bond matures at its maturity date.
Therefore, the correct option is B.
Answer:
The correct answer to the following question is option D) the vertical distance between ATC ( Average total cost ) and AVC ( Average variable cost ) .
Explanation:
AFC which is know as average fixed cost , can be taken out by dividing the total fixed cost from the total number of units produced. In the earlier phase , for the given number of units produced, both AVC and AFC curve would decrease, which would ultimately lead to fall in ATC. But when the units increase , the AVC would start to rise but AFC is still falling and due to this ATC would sill fall , because fall in AFC is still greater than rise in AVC . As output further rises , the AVC would keep on rising and would finally offset fall in AFC and ATC would also start rising. Therefore AFC would be determined by vertical distance between ATC and AVC.
Answer:
No
Explanation:
Morgan appointed Barnes to manage a new subdivision. Barnes has been permitted to transact all affairs in connection with the subdivision. Therefore, Barnes is a general agent. In some situations, either party to an agency relationship has the authority to end that relationship at any time. So, Morgan has the power to terminate the agency
Answer:
True
Explanation:
When we apply the expectations theory, we assume that there is no risk premium associated to the securities (this theory applies to government securities). If the yield curve is upward sloping (positive slope), it means that the short term yields are expected to increase. The time value of money applies to all securities, including government securities, i.e. $1 today is worth more than $1 tomorrow.
