The ledgers are an example of an accounting book of original entry. (Points : 10)

Suppose the price of a pound of flax seed in west virginia is currently $1.00. the law of one price suggests that because the pr

Reptile [31]

Answer:

It will be between $1.00 and $ 1,20

Explanation:

Solution

Given:

From the given question, the price of a flax seed in west Virginia is presently at $1.00

From the law of one price states that since the price of a pound of flax seed is $1.20 in Kentucky,

Then,

The price of a flax seed pound will be between 1.20 and 1.00

Therefore, the price of the flax seed in Kentucky as compared to that of west Virginia will be placed in between prices of $1.20 and $1.00 after the supply by sellers in both market has been adjusted or raised.

6 0

3 years ago

Career prep b final exam / post test

MariettaO [177]

Do you need help or are you telling?

4 0

2 years ago

Following ethical standards that have been outlined by the company you work for are___standards(apex)

Mashcka [7]

Answer:

D. organizational

Explanation:

You must focus on both your personal life and profession. Just got the question right on apex.

5 0

2 years ago

Brett owns investment land located in Tucson, AZ. He exchanges it for other investment land. In which of the following locations

andriy [413]

Answer:

F. None of The Above

Explanation:

Real property located in the United States exchanged for foreign real property (and vice versa) does not qualify as like-kind property.

4 0

2 years ago

A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest

My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

Market rate of interest 5%

New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

$B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

wherein, C = Coupon rate of interest

YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

n= Years to maturity

RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0

3 years ago