Answer:
b) fall to 8 percent.
Explanation:
First, irrespective of the duration of the bond, if the price is equal to the bond's face value, it means that the coupon rate is equal to the yield to maturity (YTM).
Initial YTM = 10%
Since this is a perpetually coupon paying bond, you use PV of perpetuity to find the rate;
PV = Coupon PMT / rate
Given PV as $1,250, new annual rate would be;
1,250 = 100/rate
solve for rate by cross multiplying;
1,250rate = 100
divide both sides by 1,250
rate = 100/1,250
rate = 0.08 or 8%
Therefore, the
interest rate would fall to 8 percent.
The answer is settling on morally revise business choices.
<span>
<span>The
liability created by receiving cash before providing the service or
delivering the goods in question is called unearned revenue. In this case, the entity providing the
goods/services records this transaction as revenue that has been generated
but in real sense, the seller remains with the liability until after the actual delivery
of the goods/services. The purpose of this practice can be advantageous to
the seller in certain situations such as easing the burden of paying interest
on debts.</span></span>
<span>This is the "moment of truth." These are the times at which good customer service and pleasant interactions with staff can make an experience enjoyable or it can break the trust of a customer, not to be easily repaired. Moments of truth can take place many times during an interaction or transaction, and need to be carefully monitored to make sure that the best service actions known are being taken.</span>
Frictional unemployment is the unemployment that fallouts from period consumed between jobs when an employee is looking for, or moving from one occupation to another. It is otherwise known as search unemployment and can be grounded on the conditions of the individual. So the answer is letter a, Mollie is the frictionally unemployed since she is looking for a job for 3 months already. She is searching and waiting for a job.
