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vitfil [10]
3 years ago
6

Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon

bond will change more than the price of the higher coupon bond." (True, false, or maybe?) Explain your answer.
Business
1 answer:
AfilCa [17]3 years ago
8 0

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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The demand for his hot dogs will decrease. This is because Andrea is selling things at a better price than Jeff, and Mark and his friends would probably like to try something different than hot dogs.
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3 years ago
What would likely have the most severe immediate effect on an economy? Multiple Choice A significant drop in exports. The Fed's
madreJ [45]

Answer:

A failure of the financial sector.

Explanation:

Financial sector indicates all banks and non-banking institutions. These sectors are the source of money supply in an economy. If this sector fails to do such work, the economy might face severe money crisis and the effect would be immediate. An example of it is 2007-08 depression in the US economy.

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3 years ago
An animator needs a laptop for audio/video editing, and notices that he can pay $2600 for a Dell XPS laptop, or lease from the m
Goshia [24]

Answer:

Cost of leasing over buying is $144.59

Explanation:

For computing the cost of leasing the laptop over buying it outright, we have to calculate the present value is shown below:

Given that,  

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The formula is shown below:

= PV(Rate;NPER;-PMT;FV;type)

So, after solving this, the present value is $2,744.59

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So, the difference is

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3 0
3 years ago
To measure changes taking place in your financial situation, you probably need to calculate financial ______. multiple choice qu
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To measure changes taking place in your financial situation, you probably need to calculate financial ratios.

<h3>What is  financial ratio?</h3>

A financial ratio  can as well be described as the accounting ratio which is the relative magnitude of two selected numerical values that is been gotten from a enterprise's financial statements.

It encompass  many standard ratios used to try to evaluate the overall financial condition , hence To measure changes taking place in your financial situation, you probably need to calculate financial ratios.

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2 years ago
Why is accuracy an essential element of business communication?
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Communication is an essential element of any business. One needs to convey message as effectively as possible. Therefore accuracy is the key requirement for the business communication. without the accuracy the business message will be delivered either misleading or it will be unclear.

Misleading message or miscommunication can lead to huge problems to any business. When you are working with your client, he will trust your words only if they are accurate otherwise the deal can be lost too.

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2 years ago
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