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Dmitry [639]
3 years ago
6

Which of the following statements about the relationship between interest rates and bond prices is true? I) There is an inverse

relationship between bond prices and interest rates. II) There is a direct relationship between bond prices and interest rates. III) The price of short-term bonds fluctuates more than the price of long-term bonds for a given change in interest rates. (Assuming that coupon rate is the same for both) IV) The price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates. (Assuming that the coupon rate is the same for both)
Business
1 answer:
BaLLatris [955]3 years ago
7 0

Answer: A. I and IV only

Explanation:

The relationship between bond prices and interest is an inverse one. This is because bonds have fixed rates so when for instance interest rates increase, the fixed rate of bonds will become less attractive as people would want to make the higher interest. They will therefore demand less of bonds and the prices will drop. The reverse is true.

Also, long term bonds are more affected by interest rate changes then short term bonds. This is because, as they have a longer term till maturity, they will be even less attractive when interest rates rise.

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Answer:

International business is a affects the domestic economy in many ways.

Explanation:

  • The impacts of international trade can vary from the supply and demand of a  particular good or product and their impact on the domestic market functioning. The price changes in the market affect the wages received by the workers as trade opens new foreign markets.  
  • The supply of the products is depended on the demands of the consumers which may be affected by the government policies, and many socio-cultural aspects.
  • International trade leads to the increase of the value of the products and thus increases in the demands and the competitiveness of the market, for this, the government provides a subsidy to the domestic infant industries to protect them from getting removed for the competition.
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3 years ago
APEX : Which of the following would appear in the Debits column of a bank statement for a checking account?
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Explanation:

I’m doing apex and it shows that the correct answer is an online bill payment

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3 years ago
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An import quota seeks to guarantee domestic industries ______.
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a. will have access to experts who can decide international trade disputes.

Explanation:

7 0
2 years ago
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bonufazy [111]

Answer:

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3 years ago
You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifferenc
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Infinity

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