As a result of the interest rate being 8% and the coupon being 7%, these bonds will sell at a price less than $500,000.
<h3>Why would the bonds sell less than $500,000?</h3>
When a bond's coupon rate is less than the market rate of interest, it is referred to as a discount bond.
This means that the bond will be sold at a price that is less than its face value amount. In this case the market rate is higher than the coupon rate so the bond will sell for less than $500,000.
Find out more on discount bonds at brainly.com/question/23265123.
Answer:
B) We can say that the firm is maximizing profit in the short run
Explanation:
A rational producer is at profit maximising equilibrium where : Marginal Revenue = Marginal Cost.
When MR > MC, profit is increasing & it is beneficial for firm to expand output. When MR < MC, it is loss making & it is beneficial for firm to decrease output.
If at 500 units of output : MR = MC, firm is maximising profit in short run.
Answer:
Their debt ratio is about 0.039.
Explanation:
Given information:
liabilities = $16700
Assets = $433,000
We need to find their debt ratio.
Substitute the given values in the above formula.
Therefore, their debt ratio is about 0.039.
Answer:
It isn't a violation of the law of demand. It is as a result of the elasticity of demand.
A tax is a compulsory sum levied on a good or service. Taxes increases the price of products. In determining whom should bear the greater burden of the tax between the consumer and the seller, elasticities are usually considered. The party with either a relatively inelastic supply or demand bears the greater burden of tax while the party with the more elastic demand or supply bears less burden of tax.
Demand (supply) is elastic if a small change in price has a greater effect on the quantity demanded (supplied).
Demand (supply) is inelastic if a small change in price has little or no effect on the quantity demanded (supplied).
For good X, consumers have an inelastic demand so they bear more of the tax Burden. As a result of the tax, price increases, yet the quantity demanded doesn't change. Therefore, the total revenue would rise.
For good Y, consumers have an elastic demand. Therefore, they bear less burden of tax. As a result of the increase in price, the quantity demanded falls and total revenue falls.
Explanation:
Motivation
The amount of income
Family members
Needs and interest groups affect and tend to persuade the consumer to buy certain goods
