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Lena [83]
4 years ago
15

Assume initially that market interest rates are 7% and the bondholder is receiving a $70 coupon payment per year on a bond with

a face value of $1,000. If market interest rates rise to 8%, the bond price:
Business
1 answer:
Dominik [7]4 years ago
6 0

Answer:

$875

Explanation:

Generally, the relationship can be expressed as interest rate = Coupon Payment / Face Value.

Initially a 7% market rate a investor gets 7% which gives a coupon payment of  $70 because the face value of 1000.

Hence 70/1000 = 7%

Subsequently with the interest rate change, we can look for the bond price.

Substitute 8% for the interest rate and find the revised bond value which will fall as rate increases

$70/bond price = 8%

Then $70/ bond price = 0.08

0.08 x bond price = $70

bond price = $70 / 0.08 = $875

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Answer:

The answer is B) 340 bushels of corn and 500 bushels of oats.

Explanation:

Cornland´s workers have a comparative advantage in the production of corn, each worker can grow 40 bushels per year. Since Cornland has 20 workers in total, its maximum possible output of corn bushels would be 800 (20x40=800).

Oatland´s workers have a comparative advantage in the production or oats, each worker can grow 50 bushels per year. Since Oatland has 20 workers in total, its maximum possible output of oats bushels would be 1,000 (20x50=1,000).

Currently both countries combined are producing 460 bushels of corn (400+60=460) and 500 bushels of oats (100+400=500). If each country specializes in the production of the good in which they have a comparative advantage, then their total combined output would increase by  340 bushels of corn and 500 bushels of oats.

  • Corn: specialized production - current production = 800-460 = 340 bushels
  • Oats: specialized production - current production = 1,000-500 = 500 bushels
3 0
4 years ago
Jack is preparing for a party and makes potato salad, but he does not realize that the salad contains one escherichia coli bacte
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Well it starts off with one, then for 2 hours gains more that means that there would be 64 bacteria after 2 hours.
3 0
3 years ago
Devine Linens (DL) must raise $14,000,000 to support future growth. If it raises the funds by issuing stock, DL must pay an inve
blsea [12.9K]

Answer:

D. $15,000,000

Explanation:

amount to be raised before 5%cost = $14,000,000 + $250,000

                                                            =$14,250,000

then:

100 - 5 = 95%         ~~     $14,250,000

100%                       ~~      $ 15,000000

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3 years ago
The formal written document identifying the criminal charge, the date and place where the crime occurred, and the circumstances
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4 years ago
Hurren Corp. makes a product with the following standard costs per unit of output: Standard Quantity Standard Price Direct mater
Ostrovityanka [42]

Answer:

the labor rate variance is $4,050 unfavorable

Explanation:

The computation of the labor rate variance is shown below:

= Actual hours × (standard rate - actual rate)

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