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kumpel [21]
3 years ago
13

If interest rates​ rise, bonds become more attractive to​ investors, so bond prices will rise.​ Therefore, when interest rates​

rise, bond prices will also rise. The above statement​ is___________.
Business
1 answer:
nikklg [1K]3 years ago
8 0

Answer:

The statement is false.

Explanation:

Bond prices and interest rates have an inverse relationship, as the interest on a bond rises its price will fall and vice versa.

For example if a bond has a face value of $80 and at maturity it pays $100, it means the interest rate is 20% and a $20 gain on the investment. At the high interest the investment is attractive, price of bonds is ($80) is low.

If however interest falls to 5% for the same bond. It will now have a face value of $95 (price rises) and a gain of $5 (interest falls).

So an inverse relationship exists between a bond's price and the interest rate.

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Suppose Securitex is a small firm that has developed a new​ anti-theft device for automobiles. Securitex currently sells its dev
Harman [31]

Answer:

The data is missing, so I looked for a similar question (see attached image).

in a subgame perfect equilibrium, players take turns, one player (GM) will take turn an make an offer to the second player (Securitex), and then the second player will decide whether to accept the offer or not. The situations where the offer is rejected are not really an equilibrium since basically GM and Securitex get nothing out of the deal.

The two remaining options where Securitex accepts the offer must be analyzed in the following way:

After GM makes its move, is Securitex going to be better off or not. If GM makes a high offer and Securitex accepts it, then both will be better off. But if GM makes a low offer and Securitex accepts, it, GM will be better off but Securitex will be worse off, so that is not a real equilibrium.

The only option where a real equilibrium happens and is accepted by both, is that GM makes a high offer and Securitex accepts it. This would be option C.

4 0
3 years ago
Hayleah is a california cpa practicing in california. to renew her license in active status, hayleah must to meet the basic requ
kenny6666 [7]

When performing work, there are specific requirements depending on which work Hayleah performs and these are <u>B) </u><u>Government </u><u>auditing </u><u>continuing education </u><u>requirement</u>

When dealing with governmental accounting:

  • There are certain rules that must be followed.
  • The specific rules imposed are to ensure better management of tax payer funds.

As a result, when a California CPA is involved in governmental work, specific rules known as the government auditing continuing education requirements will most likely apply.

In conclusion, option B is correct.

Find out more about different accounting standards at brainly.com/question/24441480.

7 0
2 years ago
Policies are sometimes defined as a(n)- -
Rus_ich [418]
The answer is Action plan
(_Please give it the Brainiest answer_)
6 0
4 years ago
why might alexandria choose a local movie theater when she could see the same movies for less at a corporate establishment
kenny6666 [7]

It can be inferred that Alexandria may exhibit the above traits because of her philosophy of always helping local businesses. This may come from the understanding that local businesses support and create more employment.

<h3>Why is employment important?</h3>

Employment is critical because it ensures that aggregate demand is constantly growing.

Without aggregate demand, there won't be supply and the economy collapses.

Learn more about employment at;
brainly.com/question/1446509
#SPJ1

5 0
2 years ago
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
Dmitry_Shevchenko [17]

Answer:

a

b

d

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6.      quality of goods and services

7.    externalities

The car parts produced in the US would be added to GDP as parts of exports

3 0
3 years ago
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