Answer:
The present value of the bond.
Explanation:
The present value of a bond will change when interest rate changes. The present value is the price at which you will buy the bond. Interest rate is also known as the yield to maturity (YTM). This interest rate has an inverse relationship with the price; meaning, if YTM increases, the price of the bond will decrease and vice versa.
Expected cashflows are the recurring coupon payments which are usually fixed amount in the case of a coupon paying bond. For this reason, they do not change with changes in interest rate.
The maturity value also known as the Face value or Par value is fixed and does not change with changes in interest rate.
Answer: 2.51
Explanation:
First, we calculate the number of shares that will be issued in order to raise $8.6 million at $40 a share. This will be:
= $8.6 million / $40
= 215,000
Since the firm currently has 540,000 shares of stock outstanding, the number of rights that a shareholder will need to purchase one new share of stock in this offering will be:
= 540,000 / 215,000
= 2.51
Answer:
c: P2; given by the area of the rectangle P1P2BG
Explanation:
Under monopoly, equilibrium is attained where firm's MC becomes equal to firm's MR. In the above diagram, this situation is satisfied 2 times i.e. at Q1 and Q2. This means market price may be P2 or P3 because MC = MR1 at equilibrium quantity Q1 and equilibrium price P3 while MC = MR2 at equilibrium quantity Q2 and price P2.
Economic profit of the firms is the total revenue minus total cost of the firm so it will be area above the MC curve i.e. either P1P2BG or P1P3AF.
But in the options there is presence of only P1P2BG. Therefore, (c) is the correct answer.
When this is formed by nations to advance trade it is referred to as a<u> Free Trade Area. </u>
<h3>What is a free trade area?</h3>
- A zone comprising of several nations where they don't charge each other much customs/ import duties.
- Allows for easier trade.
The purpose of a free trade area is to encourage trade amongst members but it can lead to a few members dominating if they produce more than the other members.
Find out more on free trade areas at brainly.com/question/8515719.