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Veronika [31]
3 years ago
15

Which of the following statements is correct? Multiple Choice Interest rates and bond prices vary directly. Interest rates and b

ond prices vary inversely. Interest rates and bond prices are unrelated. Interest rates and bond prices vary directly during inflations and inversely during recessions.
Business
1 answer:
nevsk [136]3 years ago
8 0

Answer:

Interest rates and bond prices vary inversely

Explanation:

The relationship between interest rate and bond prices can be seen in the bond pricing formula. Given a series of coupon payments (C) paid over the lifetime (ranging from "1" through "i" to "n") of a bond, and given that the bond will repay the principal investment (F) at maturity, the price of the bond is

P = ∑\frac{C}{(1+r)^{i}}  + \frac{F}{(1+r^{n})}

where "r" is the interest rate.

As seen in the formula, the price of the bond (P) is inversely related to the interest rate (r).

Option A is incorrect because interest rates and bond prices vary indirectly, not directly. Option C is incorrect because interest rates and bond prices are related. Option D is incorrect because vary inversely irrespective of inflation and recession.

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The inclusion of all product and period costs necessary for making and marketing a product or service is a distinguishing featur
Neporo4naja [7]

Answer:

The correct answer is the option B: market price.

Explanation:

To begin with, the concept known as "Market Price" in the field of marketing and business refers to the specific number that will contain all the costs as well as the margin wanted to end up formulating what the customers will pay when they are wanting to buy the product or service. Therefore that the market price must include all product and period costs that are necessary for making and marketing as well the product or service itself. It is obvious that the marketing costs are as important as all the direct costs that are needed for the proper production of the product due to the fact that without it the product may not be sell to any one.

4 0
3 years ago
Larry, the sole shareholder of Brown Corporation, sold his Brown stock to Ed on July 30 for $270,000. Larry's basis in the stock
Mrac [35]

Answer:

$180,000

Explanation:

Given that

Current E & P = $240,000

Distribution to Larry = $450,000

The computation of current E & P is allocated to Larry's distribution is shown below:-

Current E & P is allocated to Larry's distribution = (Current E & P × Distribution to Larry) ÷ Total distribution

= ($240,000 × $450,000) ÷ $600,000

= $108,000,000  ÷ $600,000

= $180,000

3 0
2 years ago
To make effective decisions in​ today's fast-moving​ world, managers need to​ ________.
Llana [10]
They would need to 'know when to call it quits' 
5 0
3 years ago
Marginal cost is defined as the change in ________ cost when output changes by one unit. In the short run
salantis [7]

Answer:

Marginal cost is defined as the change in <u>total </u>cost when output changes by one unit in the short run.

Explanation:

<em>Marginal cost is defined as the change in total cost when output changes by one unit. In the short run.</em>

<em>It is the amount by total cost will increase as a result of producing additional one more unit of a product.</em>

6 0
2 years ago
Read 2 more answers
Justin, age 52 and Jamie, age 49 live in California, are married, and file a joint return. Their combined salary for 2019 is $20
8090 [49]

Answer:

The correct answer is (e) None of the choices listed are correct.

Explanation:

Solution

Given that:

1. The Qualified dividend is the dividend taxed at capital gain tax rate and unqualified dividend taxed at individuals normal income tax rate. Therefore qualified dividend and non qualified dividend of $1500 &$500 included in gross taxable income.

2. Earned on US treasurers is exempt at state level but fully taxable at federal level. $1000 received taxable

3. State tax refund; don't report the state tax refund if didn't itemized deductions on federal tax return. Consider $1000 received as state tax refund required to be reported because of itemized deductions.

4. Section 125 of IRC specifies that cafeteria plans are exempt from calculation of gross income for federal taxation. Therefore $5000 cafeteria plan provided by employer is exempt.

5. During the year any state or local taxes paid and property taxes paid are deductible. Therefore $9000 and $3000 deductible subject to maximum $10000 of income tax and mortgage interest is $14000.

Now,

The Income is

The Salary= $200000

Add

The Qualified dividend= $1500

Non-qualified dividend =$500

Income from US treasurer $1000

State tax refund =$1000

Gross income$204000

The Less deductions.

Mortgage interest 14000

Income ans property tax is$10000

Tax able income= $ 180000

Therefore the taxable income is =$180000

8 0
2 years ago
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