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If bonds are issued with a stated interest rate higher than the market interest rate, the bonds will be issued at a premium.
The marketplace hobby charge is the prevailing interest price presented on coin deposits. This rate is driven by using a couple of factors, along with critical bank hobby prices, the go with the flow of budget into and out of a country, the duration of deposits, and the scale of deposits.
The market price, defined as the fee of interest, on a mortgage or investment, that's commonly available on the market for that product, described the value of gain of the tool. For a loan, the marketplace fee is the common rate of interest so that it will be charged to the receiver from a ramification of carriers.
The marketplace price (or "going fee") for goods or offerings is the same old rate charged for them in an unfastened market. I called for goes up, manufacturers and workers will tend to reply by way of increasing the charge they require, for this reason putting a better marketplace charge.
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Answer and Explanation:
An increase in the number of firms increases the demand elasticity. As the demand elasticity increases from 2 to 3 it means you could encounter less demand if product prices are increased. At a demand elasticity of -3, it is regarded as inelastic demand and a change in price will not affect the demand for the product as customers are still likely to patronize the product example gasoline. Due to its high demand, an increase in price will not readily affect the demand for it. Therefore if you are to change the price from $10 at 2 to 3 demand elasticity increase, the percentage of increase from 2 to 3 is given as.
3-2/2 X 100 = 50%
The new charge (x) at -3 demand elasticity = 50%/3 = 0.66666666
The increase in the new charge is therefore $10 + $10x = $10 + $10(0.166666) = $11.67
Answer:
6
Explanation:
The computation of the shipping errors in the case of break even is given below;
But before that the net operating income is
Sales $230,000
Less: Cost of goods sold 150,000
Less: Depreciation expense 30,000
Less: Other expenses 20,000
Net operating income $30,000
Now the shipping errors is
= $30,000 ÷ ($3,000 + $2,000)
= 6
Answer:
True.
Explanation:
Usually all the lenders are dependent on some form of risk pricing and they charge higher rate of interest from the borrowers who has more risk of bankruptcy. The borrowers who has more risk of default will give more interest for same amount as compared to the borrower having less risk of default.
So based on the above discussion, the statement given in the question is True.