Answer:
all binding forms of dispute resolution
Explanation:
Resolution of disputes has 2 types of processes.
<u><em>Adjudicative processes</em></u>, such as litigation or arbitration, in which a judge, jury or arbitrator determines the outcome.
<u><em>Consensual processes, </em></u>such as collaborative law, mediation, conciliation, or negotiation, in which the parties attempt to reach agreement.
In both of the above processes the parties most bind to the final decision conceived.
Savings accounts . . .
interest rates are most determined by the state of
the national economy.
Mutual funds . . .
Treasury bills . . .
traded on nationwide exchanges; prices and returns
are pretty uniform nationwide.
Real estate . . .
rests directly on local conditions in each city, and sometimes even in
different parts of the same city;
affected by things like local unemployment, local bad weather,
local price of gas, local tourism, local special events, etc.
Answer:
Price at issuance is $1,000 for both bonds.
Price of the 5 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77
PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47
Market price = $935.24
this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%
Price of the 10 year bond after the market rate increased to 7.4% is:
PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97
PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78
Market price = $876.75
this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%
