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
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.

You might be interested in
P&T Inc.
iVinArrow [24]

Answer:

A short-term inducement of value offered to arouse interest in buying a product or service

Explanation:

Sales promotion can be defined as a process of trying to get a potential customer to buy the product by persuading them. Sales promotion a short-term tactic used for the purpose of boosting sales. As a method of building long-term customer loyalty, it is barely suitable. Sales promotions are aimed at getting consumers interested in purchasing a product or service.

3 0
2 years ago
Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars
lilavasa [31]

Answer:

78%

Explanation:

Able has an awareness level of 78%.

Next year, it will lose a third of its awareness level.

78% * 1/3 = 26%

78% - 26% = 52%

So the base awareness level of able for next year will be 52%, however, even if the company reduced the promotion budget, it still has 1 million dollars to invest, and the question is telling us that 1 million in promotion investment results in a 26% increase in awareness, therefore

52% + 26% = 78%

Thus, after investing the 1 million dollars, Able's awareness level next year will be the same as the current year: 78%

4 0
3 years ago
Outstanding stock of the Abel Corporation included 20,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par noncumu
grigory [225]

Answer:

So, in 2010, out of the dividends of $12000, $5000 was distributed to preferred stockholders.

Explanation:

A non cumulative preferred stock is a kind of stock that has a preference in terms of dividend payment over ordinary/common stock. This means that the dividend on the preferred stock is paid first and any remaining amount after dividend payment to this stock is distributable among common stockholders. Furthermore, in case dividends are not paid in a particular year, that year's dividends are not payable in future in case the stock is a non cumulative one. So, the dividends paid to non cumulative preferred stock in 2010 will be,

Dividend per year - Preferred stock = 10000 * 10 * 0.05 = $5000

So, in 2010, out of the dividends of $12000, $5000 was distributed to preferred stockholders.

5 0
3 years ago
Jervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.5% charge on sales
lukranit [14]

Answer:

The journal entry to be recorded by Jervis on June 28 is shown below:

Explanation:

The journal entry to be recorded by Jervis on June 28 is as:

On June 28

Cash A/c......................................Dr  $5,539

Credit Card expense A/c........Dr $ 261

                Sales A/c............................Cr  $5,800

Being record the deposit of amount on Sales by Jervis

As the amount is deposited on sale which means cash is coming into the bank, and any increase in cash is debited. So, the cash account is debited. And on the amount expense is charges, the charge is also debited. Therefore, the credit card expense is debited. And the sales is made, so, the sales account is credited.

Working Note:

Credit card expense = Sales amount × Charge

= $5,800  × 4.5%

= $261

6 0
3 years ago
Distinguish between the central bank rate and the commercial bank's lending rate. What are these two rates referred to as, in so
Svet_ta [14]

the bank which monitors,regulates amd control the financial system of the economy is known as central bank whereas commercial bank is the banker to the citizen

7 0
3 years ago
Other questions:
  • Kai operates the Surf Shop in Laie, Hawaii, which designs, manufacturers, and customizes surf boards. Hawaii has a hypothetical
    7·1 answer
  • ​Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted​ $40,000 for this purcha
    10·1 answer
  • 5 find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. also ca
    10·1 answer
  • An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
    14·1 answer
  • A small multifamily property generates $50,000 in rental income, $10,000 in expenses, and $25,000 in debt service. The property
    9·1 answer
  • On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,500 units of Comfort Office Keyboard to one of its clients
    6·1 answer
  • Should I cover for my coworker who sneaks out
    6·1 answer
  • Consumers have certain rights that do NOT carry corresponding responsibilities.
    12·1 answer
  • Sterling Company paid $1,200 for 3 months of rent on April 1 of the current year. On April 30, Sterling Company made an adjustin
    9·1 answer
  • Leroux health insurance is considering changing the options in one of their health care plans (plan a) based on customer feedbac
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!