<u>Answer:</u>$0
<u>Explanation:</u>
Hansel and Gretel receive $600 as house rent allowance and they pay the same $600 towards the rent for their stay in the manager's apartment. If they live in a different building they would only pay $500 then they could save $100 which is the opportunity cost lost by them.
They do not have a gross income as the income and allowance are equal there is no gross income. They cannot even move on to other building as per the job agreement they have to stay at the manager's house which makes it impossible for them to earn gross income when in this job agreement.
B. False 1: False The decision of the project should be made based on the net present value that it adds to the company and not the impact on
When overall interest rates fall (to 2%), the bond you already own (with 5% coupon rate) becomes more valuable to potential buyers, so its price will rise.
<h3>What is the relationship between interest rate and bond prices?</h3>
A bond is a debt instrument used by companies, individuals and the government to raise capital for its activities. Bondholders earn interest on their investments at predetermined regular intervals. When the bond matures, the bondholders would receive the amount that was invested.
There is an inverse relationship between the price of a bond and the interest rate. When interest rate rises, the price of bonds would fall. Conversely, when interest rate falls, the price of bonds will rise.
The reason for this inverse relationship is that when interest rate rises, the cost of borrowing becomes higher. This discourages people from buying bonds. As a result, the demand for bonds would fall and this would lead to a fall in the price of bonds. On the other hand, if interest rate falls, it becomes cheaper to borrow, the demand for bonds would rise and this would lead to an increase in the price of bonds.
To learn more about bonds, please check: brainly.com/question/15282698
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Answer:
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