The relationship between them is that to be competitive you need to produce the best Quality
<h3>Quality and competitiveness</h3>
Question Parameters:
Generally ,Quality speaks to the originality and all round measure of how good a thing is i comparison to another
While competitiveness is a will or desire to be the best in a group of field
Therefore, the relationship between them is that to be competitive you need to produce Quality
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Answer:
we will sell bond and invest for better investments
Explanation:
we know here that Yield on Treasury Bond of Grandfather = 2.25%
so we believe interest rate will be continue for rise
Bond are valued = $950
so we the Bond and invest the proceed for better interest rate
and
we know Grandfather bond price will be decrease if rate increase as that we predict
because we know Bonds prices and the interest rate is inversely proportional to the each other
so as that if interest rate increases Bonds prices will be decrease
and the Vice Versa
so that we will sell bond and invest for better investments
because here if once the interest rate increase then he will selling point regarding for Bond and price will be fall
Answer:
€1,152.66
Explanation:
In order to determine the current price of the bond we need to apply the present value formula i.e to be shown in the attachment below:
Given that,
Future value = $1,000
Rate of interest = 4.7%
NPER = 23 years
PMT = $1,000 × 5.8% = $58
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
After applying the above formula, the current price of the bond is €1,152.66
In this example, Sarah is actually paying interest, which is compounded monthly at the rate of 7.496%. So, the correct option that matches the above statement is B.
Compound interest can be easily calculated by the way of putting the values given in the formula for compound interest, which is compounded on a monthly basis.
<h3>Calculation of Compound Interest</h3>
- Compound interest is best defined with the terms as interest given on accrued interest or the accumulated interest in addition to the interest on the principal amount.
- In the example, the amount of loan is not given. Hence, we are assuming that Sarah took a loan of $10000. It is also not provided that the tenure of the loan taken by Sarah, so we are assuming the time period as one year.
- The formula to calculate Compound interest is as given below,
- In the formula above <em>r </em>is denoted as rate of interest,<em> </em><em>n </em>is the number of times such interest is paid throughout the tenure and<em> t </em>is the time. So putting the assumed values in the formula, we get,
- So the actual interest actually paid will be $749.58 for the period of 1 year from such calculation.
- If we calculate such interest paid, the effective rate of interest paid by Sarah will account to 7.496% (rounded off to three decimal places).
Hence, we can say that Sarah will be actually paying the interest at the rate of 7.496% and that the correct option is B.
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