Answer:
he percentage increase in purchasing power that the lender receives on a loan.
Explanation:
Interest rate is the rate earned on deposits or the rate charged on loans.
Interest rate could be real or nominal
Nominal interest rate is real interest rate plus inflation rate
Real interest rate is interest rate that has been adjusted for inflation
The higher the real interest rate, the higher the increase in purchasing power of the lender
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Answer:
a) ≈ 9.6 years
b) Modified duration is a better measure because Modified duration consider the concept of negative convexity
c) i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Explanation:
A) Calculate modified duration using the preceding information
modified duration = Macaulay duration / ( 1 + (yield to maturity / 2 ))
= 10 / ( 1 + ( 0.08 / 2 ))
= 9.615 years
B) Modified duration is a better measure because Modified duration consider the concept of negative convexity while Macaulay methods shows the inverse relationship between the duration of the bond and coupon payment .
<u>C) Determine Direction of change in modified duration if </u>
i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
<u>Full question:</u>
A(n) ____ business is one that is primarily based in a single country but that acquires some meaningful share of its resources and/or revenues from other countries.
a. international
b. domestic
c. multinational
d. intercontinental
e. global
<u>Answer:</u>
A(n) international
business is one that is primarily based in a single country but that acquires some meaningful share of its resources and/or revenues from other countries.
<u>Explanation:</u>
International business comprises all marketing exercises that utilize place to support the shift of goods, assistance, sources, characters, ideas, and technologies over national borders. The development and progress of trades, production, analysis, and development, and distribution amenities in foreign markets.
The international business describes all of the commercial activities, both governmental and private, that practice place among various countries. With more countries engaging in global business, the race has warmed up and in turn, sparked more attention in international goods.
