A bond has a $1,000 face value, a market price of $989, and pays interest payments of $69.50 every year. What is the coupon rate

Indicate whether the situation below will lead to a surplus, shortage, or neither.

Masteriza [31]

If the price of a product falls to what is considered a bargain price, a shortage would occur.

A shortage occurs when the quantity demanded exceeds the quantity supplied. A shortage occurs when price is below the equilibrium price.

A surplus is when the quantity supplied exceeds the quantity demanded. A surplus occurs when price is above the equilibrium price.

When the price of a good falls to what is considered a bargain price by consumers, it means that the price of the good is below the equilibrium price.

When the price of a good is below equilibrium, quantity supplied would fall and the quantity demanded would exceed supply. As a result, there would be a shortage.

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4 0

3 years ago

Suppose the United States removes the sugar quotas and the market price of sugar drops. Since sugar is an input in chocolate, we

8090 [49]

Answer:

The consumer surplus will definitely increase.

Explanation:

The reason is that the manufacturers have purchased the sugar at a high price and now it is available at a lower price. So this means that the price of chocolate must decrease in the market if the price of material input is fallen. But the chocolate prices will take time to fall and as the result the customer is willing to pay lower prices but he is forced to pay more because the manufactured chocolates include sugar which was bought at a higher price. So the consumer surplus will increase.

4 0

3 years ago

See Hint Haiti is a very poor country. Singapore is much smaller geographically and has far fewer people, but it is roughly 70 t

Alecsey [184]

Answer:

Option A

Explanation:

Health standards in developed countries are much better than that of developing and underdeveloped nations. This is due to the advancement made in health infrastructure and medical technology. Also, people in developed nations are much educated to give priority to their health as compared to people living in developing or underdeveloped countries.

Hence, option A is correct

4 0

2 years ago

"Commercial Paper" is a term used to describe short-term unsecured debt issued by large corporations. Which of the following sta

avanturin [10]

Answer:

a. All three statements are true when discussing the term commercial paper

Explanation:

A commercial paper is an unsecured debts instrument used by large corporations to finance short-term credit needs. They have a maturity of 9 months or less and are usually issued at a discount. Commercial paper pay a fixed interest rate.

Commercial papers are issued by large and highly rated corporations, which make them relatively safe. Commercial papers or CP's offer a higher interest rate compared to secured investments and have a short maturity period making them attractive to investors. In some cases, wealthy individuals, commercial institutions, or banks may back a commercial paper.

7 0

3 years ago

Accounts payable $ 30,000 Accounts receivable 35,000 Accrued liabilities 7,000 Cash 25,000 Intangible assets 40,000 Inventory 72

vlada-n [284]

Answer:

Working capital is $113,000

Explanation:

Working capital is the funds made available for day to day operation of a business.

The capital is used in paying creditors,purchasing stock as well as other short term obligations such as payment of salaries.

Working =Current assets-current liabilities

currents assets=accounts receivable+cash+inventory+marketable securities+prepaid expenses

current assets=$35,000+$25,000+$72,000+$36,000+$2,000=$170,000

current liabilities=account payables+accrued liabilities+notes payable

current liabilities=$30,000+$7000+$20,000=$57,000

working capital=$170,000-$57,000=$113,000

4 0

3 years ago

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