Answer: See on how dependent on advertising a publication is.
Explanation:
My head hurts reading this...
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} }](https://tex.z-dn.net/?f=B_%7B0%7D%5C%20%3D%20%5Cfrac%7BC%7D%7B%281%5C%20%2B%5C%20YTM%29%5E%7B1%7D%20%7D%20%20%5C%20%2B%5C%20%5Cfrac%7BC%7D%7B%281%5C%20%2B%5C%20YTM%29%5E%7B2%7D%20%7D%20%5C%20%2B....%2B%5C%20%5Cfrac%7BC%7D%7B%281%5C%20%2B%5C%20YTM%29%5E%7Bn%7D%20%7D%5C%20%2B%5C%20%5Cfrac%7BRV%7D%7B%281%5C%20%2B%5C%20YTM%29%5E%7Bn%7D%20%7D)
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.
<u>Answer: </u>Option C Satisfy the inquiry and take the opportunity to introduce another product as well.
<u>Explanation:</u>
The first important thing in customer inquiry is that it has to be attended as soon as possible. It is a way to enhance the business and make the customer buy more when their doubts are clarified.
The other products of the business can be promoted along with the answers to the inquiry. This is the opportunity for the business to directly contact the customer so it has to be made use of. While another product is introduced the customer would be willing to know or buy the other product also.