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2 years ago

A decrease in interest rates will:__________.

Business

1 answer:

Allisa [31]2 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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The capital account records Question 2 options:

Paraphin [41]

Answer:

c. transactions involving foreign investment in the United States and U.S investment abroad.

Explanation:

The capital account provides the record of foreign investment transactions occurring between a country and another country. It gives an idea of money coming in and out of the state. A surplus in the capital account record is indicative of the inflow of money in the country, while a deficit indicates the loss of money.

Debt accrued by a country, banking, loans and investment are all reflected in the capital account record. So, for a person to determine a nations assets and liabilities, the capital account would provide an accurate insight to that information.

3 0

2 years ago

A city that is attempting to attract a professional football team is planning to build a new stadium costing $500 million. Annua

garik1379 [7]

Answer:

Capitalized cost = - $510,758,686.20

Explanation:

Interest rate = r = 10%, or 0.10

Present value of base cost = $500 million = $500,000,000

Present value of annual upkeep = $1,000,000 / r = $1,000,000 / 0.10 = $10,000,000

Present value of the replacement cost of artificial turf every 20 years = ($2,000,000 * (r / (((1 + r)^20) - 1)) / r = ($2,000,000 * (0.10 / (((1 + 0.10)^20) - 1)) / 0.10 = $349,192.50

Present value of painting every 5 years = ($250,000 * (r / (((1 + r)^5) - 1)) / r = ($250,000 * (0.10 / (((1 + 0.10)^5) - 1)) / 0.10 = $409,493.70

Therefore, we have:

Capitalized cost = - Present value of base cost - Present value of annual upkeep - Present value of the replacement cost of artificial turf every 20 years - Present value of painting every 5 years = - $500,000,000 - $10,000,000 - $349,192.50 - $409,493.70 = - $510,758,686.20

6 0

2 years ago

A snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of the

Wewaii [24]

Answer:

difference threshold

Explanation:

Difference threshold is use by businesses or effectively reduce cost without affecting their profit margin .

It is the minimum amount of change that is required to make consumers of a product to notice the change 50% of the time.

In the given scenario the snack manufacturer discovers that they must increase the salt content of chips by 14 milligrams before about 50 percent of their consumers notice the change.

7 0

3 years ago

The general manager at the Las Vegas Convention Center is planning to expand its functional area, especially the operations depa

Andru [333]

Answer:

A. Customer service friendliness and genuinenss in helping guest

Explanation:

5 0

3 years ago

In texas, the second 30 days of the legislative session are mainly reserved for

givi [52]

In Texas, the second 30 days of the legislative session are mainly reserved for the committee consideration of the bills and resolutions. Hence, the Texas Constitution limits the duration of each special session to 30 days. Lawmakers may consider only those issues designated by the governor I his call or proclamation to come together in the special session.

5 0

3 years ago