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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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What is the present value of the following series of cash flows discounted at 12 percent:
Ksju [112]

Answer:

The present value of the following series of cash flows discounted at 12 percent is:

$171,890

Explanation:

a) Data and Calculations:

Discount rate = 12%

$40,000 now;

$50,000 at the end of the first year;

$0 at the end of year the second year;

$60,000 at the end of the third year; and

$70,000 at the end of the fourth year

Future Value  Discount Factor   Present Value

$40,000                 1                      $40,000

$50,000                 0.893             $44,650

$0                           0.797              $0

$60,000                 0.712              $42,720

$70,000                 0.636             $44,520

Total present value                      $171,890

b) The present value is the discounted cash flow from series of future cash flows.  The discount factor is applied to the individual cash flows, based on the number of years before the cash flow occurs.

6 0
3 years ago
A project manager has just found out that a major subcontractor for her project is consistently late delivering work. The projec
Olenka [21]

Answer:

compromise

Explanation:

Compromise as a conflict resolution strategy is one that involves finding acceptable reasons such that all the parties involved in the conflict have their concerns satisfied partly.

The project manager saying "You both will have to give up something to solve this problem" means that both parties involved in the conflict will have to come to an agreement that suits or benefits both parties.

Cheers.

6 0
2 years ago
Using advertising to promote a company, instead of a product or service, is called what?
fiasKO [112]
C). Institutional Advertising. 
I think This is correct
7 0
2 years ago
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Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm h
Snezhnost [94]

Answer:

The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero

Break Even sales for Company wide =  $378,000

Break Even Value for Chicago is $111,429

And Break Even Value for Minneapolis is $120,000

The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.

Explanation:

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3 years ago
A work arrangement whereby employees are able to remain at home and perform their work using computers that connect them with th
Anarel [89]

Answer:

Telecommuting

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Telecommuting is when employees work outside of their organization. In this type of work arrangement, employees work remotely and are connected to their organization platform through technology applications such as zoom, slack etc.

Although, workers may visit their workplace occasionally for meetings that requires physical presence , their main duties are carried out away from their workplace.

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3 years ago
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