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2 years ago

What will happen to the market value of a bond if interest rates decrease?

Business

1 answer:

enot [183]2 years ago

8 0

Answer:

b. The market value will increase

Explanation:

In the case when the rate of the interest decrease so the market value of the bond would be increased. As the market value of the bond and the rate of interest has an inverse relationship between them. In the case when the rate of interest increased than the market value of the bond decreased and vice versa

Therefore option b is correct

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A company purchased a tract of land for its natural resources at a cost of $1,544,800. it expects to mine 2,020,000 tons of ore

Tasya [4]

The gradual decrease in the value of natural resource is called depletion. The deplection expense is calculated on the cost net off salvage value.

$Depletion expense per ton of ore=\frac{(Cost of resource - salvage value)}{Expected Mine} =\frac{(1544800-252000)}{2,020,000} =$0.64$

Therefore, Depletion expense per ton of ore would be $0.64 per ton of ore.

5 0

3 years ago

Mochel Company employs a standard cost system in which direct materials inventory is carried at standard cost. The company has e

oee [108]

Answer:

$16,100 favorable

Explanation:

The computation of the direct labor efficiency variance for June is shown below:

= Standard rate × (standard hours - actual hours)

= $23 × (1.3 × 35,000 - 44,800)

= $16,100 favorable

hence, the direct labor efficiency variance for June is $16,100 favorable

The same should be considered and relevant

3 0

3 years ago

Consumers experience ______ marginal utility the more they consume of a particular good or service.

kifflom [539]

<u>Answer:</u>

less

<u>Explanation:</u>

The law of diminishing marginal utility states that, as consumption of a good or service increases, its marginal utility decreases.

4 0

2 years ago

a common trait of corporate distribution systems, administered distribution systems, contractual distribution systems and supply

Leni [432]

Answer:

They all try to improve the efficiency and effectiveness of the distribution systems linking the firms together in a formal and mutual relationship.

8 0

3 years ago

Assume that the required reserve ratio for the commercial banks is 25 percent. If the Federal Reserve Banks buy $3 billion in go

erastova [34]

Answer: $12 billion

Explanation:

Given that,

Required reserve ratio (rr) = 25 percent

Fed purchases government securities = $3 billion

Money multiplier = $\frac{1}{rr}$

= $\frac{1}{0.25}$

= 4

Lending ability of the commercial banking system will increase by:

= Money multiplier × Increase in Fed purchases

= 4 × $3 billion

= $12 billion

8 0

3 years ago