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Lisa [10]
2 years ago
13

If a one-year bond has a face value of $5,000 and is sold for $4,500, what is the interest rate on the bond?

Business
1 answer:
Arada [10]2 years ago
6 0

Answer:

11.1%

Explanation:

The face value is $5000

It is sold for $4,500

Therefore the interest rate of this bond can be calculated as follows

$5000-$4500

= 500

500/4500 × 100

= 0.111 × 100

= 11.1%

Hence the interest rate is 11.1%

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Answer: Option (c) is correct.

Explanation:

Correct option: The demand facing the firm is downward-sloping because it is the market demand.

In a monopoly market conditions, there is a single seller in the market and the monopolist firm is price setter. But the demand curve faced by the monopoly firm is downward sloping because monopolist is a single firm who is operating in the market and there is a need to reduce prices if he wants to sell an additional units.

4 0
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Olivia is willing to pay $185 a month for four years for a car payment. if the interest rate is 4.9 percent, compounded monthly,
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Let x = the price of the car that Olivia can afford.

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2 years ago
One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of
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computer price down -> equilibrium price down

computer price down -> equilibrium quantity up

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