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katovenus [111]
3 years ago
15

A decrease in interest rates will:__________.

Business
1 answer:
Allisa [31]3 years ago
5 0

Answer:

c. not affect the bond's duration.

Explanation:

The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.

On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.

Payment frequency would not change with the decrease interest rate.

The Coupon rate will also remain the same whether the interest rate increases or decreases.

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Bright Future Investment Fund has a balance of $1, 205 on January 1. On May 1, the balance is $1, 230. Immediately after this ba
lilavasa [31]

Answer:

The fund balance at the end of the year is $22,075.

Explanation:

Let X denote the end-of-year balance. During the year, the balance grows as follows

1,205 → 1,230+ ($800) = 2,030

The time-weighted yield rate for the one yearperiod is 11.1%

11.1 = \frac{1230}{1205} * \frac{X}{2030}

1230x = 27152265

x =  \frac{27152265}{1230}

x = $22,075

7 0
3 years ago
The introduction of automatic elevator equipment allowed firms to handle the movement of people in a multistory building at less
ad-work [718]

Answer:

The marginal product of automatic elevator equipment divided by its price was greater than that for elevator operators

Explanation:

Since in the question, it is mentioned that the automatic elevator introduction permit the firms to handle the movement of the people at least cost also it declines the demand for the operators of the elevator

This represents that the marginal product of elevator equipment would be divided by price and also it is more than for operators who are dealing in elevators

5 0
4 years ago
A university dean is interested in determining the proportion of students who receive some sort of financial aid. rather than ex
ella [17]
Answer: 0.59 ± 0.081 = (0.671, 0.509)  
Explanation: 
The sample proportion, p = 118/200 = 0.59 
The test statistic at 98% confidence interval is given by : 
p + z*Sqrt(p(1-p)/n) ; p - z*Sqrt(p(1-p)/n) 
z at 98% C.I. is 2.33 
Therefore, 0.59 + 2.33 * sqrt(0.59*(1-0.59)/200) and 0.59 + 2.33 * sqrt(0.59*
(1-0.59)/200)
 =0.59 + 0.081 and 0.59 - 0.081
 =0.671, 0.509
5 0
4 years ago
Which one of the following is NOT one of the major business functions or specialized tasks performed by business organizations a
mina [271]
Answer is E

This a process which engages working people through union. They negotiated a contract with owner& the employers to get information details about the term of employment like pay, benefits, house leves,,health, safety policies.

Help to ensure balance work and personal relationship.

Sale HR financial and production are important business functions & supported heavily by information systems.

Collective bargaining is a negotiating process not core business function or specialised task.
8 0
3 years ago
TVLand sells home entertainment systems and also offers a complementary installation service. The same service is offered by oth
Tema [17]

Answer:

$70

Explanation:

Calculation to determine what the stand-alone selling price of the installation service is:

Stand-alone selling price= $50 + (40%*$50)

Stand-alone selling price=$50+$20

Stand-alone selling price= $70

Therefore the stand-alone selling price of the installation service is:$70

7 0
3 years ago
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