The demand curve for bonds shifts to the left and the interest rate rises.
<h3>Influence of the demand curve</h3>
When bonds are not frequently traded, and the market becomes less liquid, the demand for the bonds falls.
As a result, with a fall in demand, the curve will move towards the left. To overcome the less liquid position, bond suppliers will raise the interest rate to attract investors and capital in the market
To overcome the less liquid position, bond suppliers will raise the interest rate to attract investors and capital in the market
Therefore, the correct answers are left and rise.
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Answer:
The target share price is $53.69
Explanation:
In calculating the target share price in five years from now,it would be appropriate to determine the value of EPS in five years timing horizon using the future value formula which is given as :
fv=pv*(1+r)^N
PV is the present eps of $1.7
r is the eps growth rate of 7.5%
N is five years
fv=$1.70*(1+7.5%)^5
fv=2.440569854
Hence the target share price is computed using the P/E ratio:
P/E ratio=Price/EPS
Price is unknown]
EPS is 2.440569854
P/E ratio is 22
22=price/2.440569854
price=22*2.440569854
price is $53.69
Answer:
the recorded value of the new truck is $135,000
Explanation:
The computation of the recorded value of the new truck is given below;
In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000
Hence, the recorded value of the new truck is $135,000
The same would be considered and relevant
And all other values are to be ignored
If o<span>fficials argue that the government needs to reduce the national debt, I believe that the actions that are most likely to accomplish this goal are to increase taxation and decrease spending.
If they increase taxation, more money will come into the state fund, and if they decrease spending, more money will actually stay there.
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