All categories

2 years ago

The present value of an expected future payment ________ as the interest rate increases.

Business

1 answer:

LekaFEV [45]2 years ago

6 0

The present value of an expected future payment "<em><u>falls</u></em>" as the interest rate increases.

This is based on the idea that the bond is paid at a fixed interest rate. Thus as the interest rate increases, the value of the bond decreases or falls because investors would certainly stay away from such bonds, therefore, making its value reduce or fall.

Similarly, if the interest falls, a bond with a fixed interest rate becomes more attractive to investors.

Hence, in this case, it is concluded that the interest rates determine the value of the bond.

Learn more here: brainly.com/question/17175565

You might be interested in

Which of the following is true of business locations?

Mazyrski [523]

Answer:

B. Target market customers are essential factors for selecting business locations.

3 0

3 years ago

Why isn't elasticity just measured by the slope of the demand curve?

marissa [1.9K]

I think its B if not B than C most likely

6 0

3 years ago

The________________ view of corporate social responsibility is that business should focus on making valuable contributions to so

m_a_m_a [10]

The socioeconomic view of corporate social accountability is that commercial enterprise have to center of attention on making precious contributions to society, now not just making profits.

<h3>What is the financial model of social responsibility?</h3>

The socio-economic model of social duty demonstrates that a enterprise not only focus or listen upon what form of income it is making or how will it make extra income in the future but additionally seem to be after the effect that it is inflicting on society from time to time.

<h3>Why is company social accountability necessary to business?</h3>

Embracing CSR will increase client retention and loyalty, increases employee engagement, improves manufacturer imaging, attracts funding opportunities and pinnacle talent, and makes a difference for bottom-line financials.

Learn more about corporate social responsibilities here:

<h3>brainly.com/question/1373962</h3><h3 /><h3>#SPJ4</h3>

5 0

1 year ago

Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Mater

Rufina [12.5K]

,Answer:

Zoe Corporation

Statement of Cost of Good Manufactured For the Month Ended March 31

Work in Process Inventory 22,000

Direct Materials:

Materials inventory, March 1 6,000

Purchases 92,000

Less Materials inventory, March 31 <u> ( 8,000)</u>

Cost of Materials used in Production 90,000

Direct Labor 25,000

Factory Overhead <u> 37,000</u>

Total Manufacturing Cost 174,000

Less Work in Process Inventory, March 31 <u> (23,500) </u>

Cost of Goods Manufactured 150,500

7 0

3 years ago

Which of the following is an advantage of partnerships over sole

miss Akunina [59]

The correct answer is A.

Partnerships are at an advantage over a sole proprietorship in terms of raising money. While a sole proprietorship only has the money from the proprietor, a partnership has money from all of the partners.

7 0

3 years ago

Read 2 more answers