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ANTONII [103]
3 years ago
12

You buy a 7 percent, 25-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are

up to 9 percent. What is your one best guess as to the value of the bond
Business
1 answer:
SVEN [57.7K]3 years ago
7 0

Answer:

The best guess to the value of bond is $1000.

Explanation:

The best guess to the value of a bond is $1000 because the flotation rate bonds are those bonds where coupon rate varies according to the market situation. Therefore, we can say that the coupon rate in the case of flotation bonds is based upon the rate of LIBOR, etc.  Generally, the bond value remains the same and there will be no capital gain or loss to the investor.

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The answer and procedures of the exercise are attached in the following image.

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The long-run aggregate supply curve shifts right if:
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The long-run collective supply curve shifts right if productivity increases or the price of key inputs decrease. It makes the combination of the lower inflation, higher output and lower unemployment.

<h3 /><h3>What is aggregate supply?</h3>

Aggregate supply is also called total output, it is the total production of the goods and services within an economy at the overall price at the given period.

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2 years ago
What is the meaning of marketing​
gregori [183]

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6 0
3 years ago
Read 2 more answers
Assume (1) a predetermined overhead rate of $8.00 per machine-hour, (2) actual machine-hours worked during the period of 54,000
rodikova [14]

Answer:

Allocated MOH= $432,000

Explanation:

Giving the following information:

Predetermined overhead rate of $8.00 per machine-hour

Actual machine-hours worked= 54,000 hours

<u>To calculate the allocated overhead, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 8*54,000

Allocated MOH= $432,000

7 0
3 years ago
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