Answer:
(B) Leave his portfolio the way it is now
Explanation:
Bond value and market interest rates are inversely related. When the market interest rates are expected to decline and an investor already holds a bond with fixed rate of interest, the value of such bonds shall rise.
Market interest rates refer to the rate of interest other firms are offering on similarly priced bonds. Thus market interest rate also implies investor expectations i.e YTM (yield to maturity) which is used as a discounting factor to ascertain the price of a bond.
Lesser the discounting rate (yield to maturity), higher shall be the value of a bond.
Thus, it is recommended for Mr Smith to (B) leave his portfolio the way it is now.
The four major components that go into the calculation of the U.S. GDP, as used by the Bureau of Economic Analysis, U.S. Department of Commerce are:<span>Personal consumption expenditures.
Investment.
Net exports.
<span>Government expenditure.</span></span>
Answer:
We need 11 deposits of $ 5,268.735 per year to achieve our desired retirement plant.
Explanation:
Present value of the retirement plan in 11 years:
C 14,000.00
time 16
rate 0.12
PV $97,635.8061
We need to get that amount in 11 year at 10% annual rate:
FV $97,635.8061
time 11
rate 0.1
C $ 5,268.735
Answer:
C. much more important than is the demand and supply of foreign currency originating from trade in goods
Explanation:
Answer: No.
Explanation:
Even though Stoker obtained this information after terminating the agency with the buyer, he cannot share it with the seller as in this case, it seems that the full effect of the changed relationship isn't understood by the buyer-customer.
It's essential for the broker to make sure that certain the former client understands the meaning of the situation at hand.