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3 years ago

If current market interest rates rise, what will happen to the value of outstanding bonds?

Business

1 answer:

Flauer [41]3 years ago

3 0

Answer:

The correct answer is 4. If current market interest rates rise, the value of outstanding bonds will fall.

Explanation:

The economics of financial investment of bonds indicates that if the value of the interest rate rises, said rise implies a virtual increase in the risk of the bond, that is, it pays more interest because it is more risky to invest in it.

Therefore, in the event of an interest increase, the price of the bonds will fall. On the contrary, a lower interest rate infers a greater security of the financial asset, with which the lower the interest rate, the higher the value of the bond.

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Sheridan Company had the following transactions during the quarter end:

White raven [17]

Answer:

Payment of insurance premium include in last quarter = $204,000

Explanation:

Given:

Insurance premium during the year = $816,000

Number of quarter in the year = 4

Computation of payment include in last quarter:

Payment of insurance premium include in last quarter = Insurance premium during the year / Number of quarter in the year

Payment of insurance premium include in last quarter = $816,000 / 4

Payment of insurance premium include in last quarter = $204,000

8 0

3 years ago

To manufacture 3,000 pairs of sandals in a week, a firm can use 3,600 workers and 135 machines or 270 machines and 3,300 workers

Nutka1998 [239]

Answer:

3,600 workers and 135 machines is more technically efficient.

Explanation:

a. For 3,600 workers and 135 machines

Worker technical efficiency = 3,600/3,000 = $120%

Machine technical efficiency = 135 / 3,000 = 4.50%

Average technical efficiency = (120% + 4.5%) / 2 = 62.25%

b. For 270 machines and 3,300 workers.

Worker technical efficiency = 270/3,000 = $9%

Machine technical efficiency = 3,300 / 3,000 = 110%

Average technical efficiency = (9% + 110%) / 2 = 59.50%

Conclusion

Since the average technical efficiency of 62.25% is higher than 59.50%, 3,600 workers and 135 machines is more technically efficient.

8 0

3 years ago

Mega Mart is a part of a business unit that has grown very slowly over the years. According to your local business newspaper, th

arlik [135]

The right answer for the question that is being asked and shown above is that: • • Mega Mart is a “dog.” A business unit is considered a dog is when the market growth rate is low and the relative market share is also low.

Business unit that has grown very slowly.
They have a very low share.<span>
</span>

8 0

3 years ago

A(n) _____ involves moving an employee into a position with greater challenges, more responsibility, and more authority than in

Sidana [21]

Answer:

Job enlargement.

Explanation:

Job enlargement refers to the process of adding challenges or new responsibilities to an employee’s current job.

5 0

3 years ago

You need $120,000 to start your business. You plan to invest $54,000 in the business and obtain financing from outside investors

bonufazy [111]

Answer:

45%

Explanation:

54/120

8 0

3 years ago