1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLEGan [10]
3 years ago
6

Answer the next question on the basis of the following information for a bond having no expiration date: bond price = $1,000; bo

nd fixed annual interest payment = $100; bond annual interest rate = 10%. If the price of this bond falls by $200, the interest rate will __________.a. fall by 2.5 percentage points.
b. rise by 5 percentage points.
c. fall by 5 percentage points.
d. rise by 2.5 percentage points.
Business
1 answer:
Keith_Richards [23]3 years ago
6 0

If the price of this bond falls by $200, the interest rate will

d. rise by 2.5 percentage points.

Explanation:

  • Bond price = $1,000; bond fixed annual interest payment = $100; bond annual interest rate = 10%. If the price of this bond falls by $200, the interest rate will rise by 2.5 percentage points.
  • Bond valuation is the determination of the fair price of a bond.
  • the theoretical fair value of a bond is the present value of the flow of cash that streams in it is expected time to generate.
  • In order to calculate the bond price, one has to simply discount the known predict flow of cash.
  • When investors get anxious, they buy government bonds. Governments usually pay back their debts, so those bonds are at safety.
  • You can also lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer pays on their payments.

You might be interested in
The person may not have made a wise choice initially; the chosen career may no longer exist; values and interests may have chang
boyakko [2]

Answer:

Changing Careers

Explanation:

My best guess would be that the reason their values and interests may have changed is either due to going back to school or changing careers. In both cases, your interests would of changed to fit what you chase but changing seems more plausible. Hope this helped and solved your question!

8 0
3 years ago
Read 2 more answers
"E3-26A Record manufacturing overhead (Learning Objectives 5 & 6) Refer to the data in Exercise 3-25A. Smith’s accountant fo
Kipish [7]

Explanation:

Journal entries are used by Accountants to post transactions into the respective General Ledger of a business.

It typically shows a debit side which records increase to expenses or Assets, it also could be a reduction to Income or Liabilities (if it is an adjustment Journal). And it also shows a credit side which records an increase to Income or Liability, it could also be a reduction to expense or Asset (if it's an adjustment journal)

4 0
4 years ago
Mistakes made by staff are affecting overall efficiency, so you have contacted the local community college to inquire about cust
Tamiku [17]

Answer:

sign up for either program

Explanation:

By ensuring that the Staff participate in the training, it will enable the staff to minimize mistakes and improve overall efficiency. Efficiency is important to maintain operations.

5 0
3 years ago
Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40
balu736 [363]

Answer:

2.3

Explanation:

Levered Beta = Unlevered Beta x (1+D/E)

D/E = Debt-to-Equity Ratio

1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3

8 0
3 years ago
Tinker's cost of goods sold in the year of sale (2019) was $790,000 and 2018 cost of goods sold was $810,000. The inventory at t
gladu [14]

Answer:

91 days

Explanation:

Here, we are to calculate the average number of days it will take to sell its inventory in 2019.

We proceed mathematically as follows;

Inventory turnover=COGS/Average inventory

Average inventory=(192,000 + 202,000)/2=$197,000

hence inventory turnover=(790,000/197,000)= 4.01

hence average days to sell=365/4.01 =91 days (approx)

6 0
4 years ago
Other questions:
  • If money is paid when a change of ownership in a life insurance policy takes place, this is generally known as a ____________.a.
    11·1 answer
  • This term refers to the length of a training session:
    13·1 answer
  • How will this be displayed in a journal entry? T-account?
    6·2 answers
  • Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio
    5·1 answer
  • Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A
    8·1 answer
  • Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou
    11·1 answer
  • Which of the following is an unethical behavior for a salesperson?
    15·2 answers
  • Which of the following conditions is characteristic of a monopolistically competitive firm in both the short-run and the long ru
    14·1 answer
  • What condition exists if you have a monthy soending deficit?
    15·1 answer
  • Jones Company allocates manufacturing overhead based on machine hours. Each chair produced should require 3 machine hours. Accor
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!