Fordism, a specific stage of economic development in the 20th century. Fordism is a term widely used to describe (1) the system of mass production that was pioneered in the early 20th century by the Ford Motor Company or (2) the typical postwar mode of economic growth and its associated political and social order in advanced capitalism.
The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,
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Answer:A. To sell the bond for more than what you paid for the bond
Explanation:
The security market in which bonds are sold are affected by information in relation to specific bond either favorable or unfavorable information.
The price of the bond will appreciate in response to existing or anticaped positive information and will depreciate in response to negative or anticaped negative information..
The increase in market return in relation to the bond of similar nature in the above scenario shows an existing or anticipated positive development and for this the bond is expected to be sold than the purchased price.
