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
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.

You might be interested in
Following a phone call addressing a customer problem, what should you do? O Remove the customer from your mailing list. O Report
kakasveta [241]

Answer:  Follow up with a letter that documents the call and promotes goodwill.

                                         

Explanation: The given case, belongs to the public relations concept under which the company tries to interact better with their customers, so that the customers enjoy a healthy experience and the image of the company remains positive.

The proper way to address a complaint call is to follow up by giving a letter stating the explanation apologies, excuses shall not be mentioned and assurance should be provided that such action would not be taken in future.

                 

7 0
4 years ago
Marcy owns the company Caps for Kids and sells her hand-knitted caps for $20 each. The variable cost per cap created is $10, and
iragen [17]
At breakeven point, the cost is equal to the revenue. This also means that the net profit is equal to zero. If we let x be the number of units sold or produced, the total costs and revenue are calculated as follows:

Total Cost = 10x + 10,000
Total Revenue = 20x

Equation both,
                10x + 10,000 = 20x
The value of x from the equation is 1000.

Answer: 1000
3 0
3 years ago
1. Your older sister, Anna is trying to figure out how she's going to pay for college in the
Elis [28]
1.) student loans due to the fact that they are more secure than credit card debt and maybe have long periods before they have to be paid off.
2.) chad has a maximum amount of money he can use before it has to be paid back. Unfortunately chads maximum was so low he couldn’t even buy popcorn, or he already maxed out his card.
6 0
3 years ago
Jia's Fashions recently paid a​ $2 annual dividend. The company is projecting that its dividends will grow by 20 percent next​ y
Softa [21]

Answer:

Jia's fashions recently paid a $2 annual dividend

Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its dividends will grow by 20 percent next year, 12 percent annually for the two years after that, and then at 6 percent annually thereafter.

Explanation:

4 0
3 years ago
Lilly would like to start investing. What tools and services can she benefit from?
zhenek [66]
Lily can benefit both from investing her money in the bank and in insurance companies. The bank can be both a short and long-term investment where she could get her finances from in case she needs them, while insurance companies will become her long-term investment in case she needs finances for her other needs (i.e. health, travel, etc.).
3 0
3 years ago
Other questions:
  • Timothy will be going for a job interview for the first time. Despite preparing well for the interview, he still seems very nerv
    14·2 answers
  • Which represents the best way to compose experience statements? a. Input 35+ accounts receivable using QuickBooks Prepared month
    9·1 answer
  • This chart shows the link between
    11·2 answers
  • In a market economy, a high price is a signal for:___________.1. Producers to supply more and consumers to buy less. 2. Producer
    7·2 answers
  • Match each item (characteristics, assumptions, principles, and constraint guide the FASB when it creates accounting standards) w
    13·1 answer
  • Which of the following theorems explains the relationship between interest rates and bond prices? For a given change in interest
    8·1 answer
  • Which of the following assumptions is embodied in the AFN equation?
    12·1 answer
  • Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., whe
    12·1 answer
  • A small private college situated in a rural geographic setting, a research lab at a bio-tech company and an attorney could all b
    14·1 answer
  • Many home buyers express common concerns about the energy efficiency of their homes. Of the following, which is a measurement of
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!