Answer:
False
Explanation:
The statement is false, as a decrease in the overall interest rate increases the overall worth of a bond which pays fixed interest rate payments. The public will demand more bonds with fixed interest rate payments, and the demand for bonds with flexible interest payments will decrease likewise. This is the main reason why the face value of bonds with fixed interest rate payments is usually higher than flexible bonds because they are less risky.
Answer:
16.59%
Explanation:
We are given the present value of the bonds, their future value and the time, we need to calculate the rate:
FV = PV (1 + rate)ⁿ
- FV = 100,000
- PV = 999.38
- n = 30
100,000 = 999.38 (1 + rate)³⁰
(1 + rate)³⁰ = 100,000 / 999.38 = 100.062
1 + rate = ³⁰√100.062 = 1.1659
rate = 1.1659 - 1 = 0.1659 or 16.59%
Answer:
The correct answer is letter "D": straight line.
Explanation:
Utility represents the satisfaction a person receives from the use of a good or service. In case there is a risk-neutral decision-maker, that individual is unlikely to vary the value he or she provides to the use of products to remain in a comfort zone. However, the utility could vary according to satisfaction the good or service provides in different situations.
Thus, if plotted in a graph, <em>the value representing the horizontal axis and the utility the vertical axis, there will be a straight line departing from the horizontal axis parallel to the vertical axis.</em>
Answer:
The substance does not contain carbon
.
Explanation:
Usually, an inorganic substance is a type of chemical substance that loses bonds with carbon-hydrogen, that is, a product that is not biological.
- The difference, though, is not defined and accepted, and experts have varying views on the matter.
- An inorganic compound, any material which generally combines two or more chemical compounds other than carbon, almost always in clear and obvious percentages.
Absorption costing is a managerial accounting method for capturing all costs associated with the manufacture of a particular product. Absorbed cost, also known as absorption cost, is a Contribution Margin accounting method that includes both the variable and fixed overhead costs of producing a particular product. Knowing the full cost of producing each unit enables manufacturers to price their products.
Contribution Margin per unit = Contribution Margin / Units Sold
Contribution Margin per unit = $1,424,000 / 8,900
Contribution Margin per unit = $160
Breakeven Point in units = Fixed Costs / Contribution Margin per unit
Breakeven Point in units = $1,360,000 / $160
Breakeven Point in units = 8,500
Learn more about Absorption costing here
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