The demand of that product decreases only the few who can afford will purchase and the cause of higer prices on aproduct may b due to increement in taxes on acommodity by the gov't
Answer:
$1,053.29
Explanation:
The intrinsic value of the bond is the present value of the bond's future cash flows, semiannual coupons for 3 years as well as the face value at the bond's maturity payable to bondholders.
The bond price can be determined using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=6(there are 6 semiannual coupons in 3 years)
PMT=45(semiannual coupon=1000*9%*6/12=45)
I/Y=3.5(semiannual yield=7%*6/12=3.5%
FV=1000*(the face value of the bond is $1000)
CPT
PV=$1,053.29
Answer:
a scale of preference has to be drawn.
Explanation:
This is an economic concept where a choice is made between two or more items based on the order of importance.