When interest rates in the market fall, bond values will increase because the present value of the bond's remaining cash flows ____.

Answers

Answer 1

When interest rates in the market fall, bond values will increase because the present value of the bond's remaining cash flows will increase.

What is the effect of a decrease in interest rate on present value?

A bond is a debt instrument used by firms to raise capital for their daily operations. Bondholders are paid interest based on the interest rate.

Present value is the sum of discounted cash flows. The bond is usually discounted using the interest rate. There is a negative relationship between interest rate and the present value of bonds.

Assume that a bond would pay 1000 in 5 years. The interest rate is 10%.

The present value of the bond : 1000 / (1.1^5) = 620.92

Assume now that interest rate is now 2%, the present value would be:

1000 / (1.1^2) = 826.45

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Related Questions

The actions that firms in an industry must perform in the process of designing, manufacturing, and providing customer service are called:__________

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The actions that firms in an industry must perform in the process of designing, manufacturing, and providing customer service are called:   value activities

What are primary value activities?

The primary activities of the value chain are  inbound logistics, operation outbound logistics, marketing and sales, and service. Secondary activities or the support activities like  firm infrastructure, human resources management, and procurement

What is an example of a value chain activity?

The activities associated with this part of the value chain are giving service to  maintain the value of the product after it has been sold and delivered. Examples: installation, repair, training, parts supply and product adjustment.

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When a manager does not receive forecasts, sales projections, or appropriate dashboards, the business objective of ______________ is not achieved.

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When a manager does not receive forecasts, sales projections, or appropriate dashboards, the business objective of improving decision making is not achieved.

What do you mean by Decision-making?

The cognitive process that leads to the selection of a belief or plan of action from a range of potential outcomes is known as decision-making. It could be logical or illogical. The process of making a decision is based on the decision-values, maker's preferences, and beliefs. Every decision-making process ends with a final choice that may or may not be followed by action.

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A consumer is most likely to primarily use a(n)_________ when he buys a brand such as apple to which he is very brand loyal, or if he has previously owned an ipod and an iphone previously.

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A consumer is most likely to primarily use a(n) Internal search when he buys a brand such as an apple to which he is very brand loyal, or if he has previously owned an iP/od and an iP.hone previously.

This is further explained below.

What is an Internal search?

Generally, When a customer buys a product from a company like Apple, for which he has a strong sense of brand loyalty, or if the customer has previously had both an iPod and an iPhone, the customer is more likely to do an internal search than any other kind of search.

In conclusion, A list of search phrases that visitors to your website have typed into the search engine on your website is shown by Internal Search.

Search does not display the search phrases that were entered into an external search engine, such as G/oogle or Bi/ng, in order to locate your website.

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Nsamcwadlp means that whenever you create an online marketing campaign, you should also create:_____.

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Nsamcwadlp means that whenever you create an online marketing campaign, you should also create:" a dedicated landing page designed specifically for that campaign".

What is online Marketing?

Digital marketing is the part of marketing that uses the Internet and online digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services.

What are its advantages?

Online marketing is the use of various and evolving Internet-based digital technologies to reach a target audience.

These technologies include (but are not limited to)

content marketing, social media, websites, search engine optimization, online video, email marketing,paid search, and more.

Global Reach: via one website allows you to find new markets and trade worldwide with only a small investment.

Lower Cost: A well-planned, targeted digital marketing campaign can reach the right customers at a much lower cost than traditional marketing methods.

Is internet marketing expensive?

With online marketing, you can look for free or paid traffic sources. With a free service, you just need to invest your time. For paid they have to pay. You can often optimize your website to earn money from paid sources.

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An acre of land costs $15,000. jerry would like to purchase four acres. how much will this cost?

Answers

Answer:

60000

Explanation:

15000*4

Ll the costs appearing on the job cost sheets of the jobs that are being worked on are found in the ______ account.

Answers

Ll the costs appearing on the job cost sheets of the jobs that are being worked on are found in the work in process account.

Cost Sheet

A cost sheet is a declaration that lists all the different parts that make up a product's total cost and provides comparative historical data. You can determine the ideal selling price of a product using the cost sheet as a guide. You can use expected costs or past costs to build a cost sheet document.

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The university of texas and texas a & m university systems get large sums of money for their endowments from oil and gas royalties.
a. true
b. false

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This is true. The university of Texas and Texas a & m university systems get large sums of money for their endowments from oil and gas royalties.

What is the meaning of royalties?

This is the term that is used to refer to the sum of paid due to the fact that something was sold. It is the money that the university would get due to the fact that they sold oil and oil products in the state. Texas is a very rich oil state.

Hence we can say that: This is true. The university of Texas and Texas a & m university systems get large sums of money for their endowments from oil and gas royalties.

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A company may properly classify an asset that provides benefits for 15 months as a current asset if:______

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A company may properly classify an asset that provides benefits for 15 months as a current asset if the asset's useful life cannot be separated into time segments.

How Do Current Assets Work?

All assets possessed by the company that can be turned into cash within a year are recorded in the Current Assets account, which is a line item on the balance sheet under the Assets heading. Current assets are items whose value is shown in the Current Assets account.

Cash, cash equivalents, receivables, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets are examples of current assets. Current Accounts are another name for current assets.

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The goal of the price cut described in in the news was to:_______
a) increase supply.
b) increase quantity demanded.
c) increase demand.
d) increase quantity supplied.

Answers

Price reduction with the intention of raising demand.

What does "Law of Demand" mean?

According to the law of demand, the relationship between price and quantity demanded of any good or service and other parameters remaining constant is inverse. A product's price increase causes a decrease in consumer demand for that same product.

The law of demand explains why consumers make certain decisions when prices vary. When a good's price increases, there is less demand for that good in the market, presuming other factors that affect demand remain constant. This is how people naturally make purchases. This occurs as a result of consumers' reluctance to spend more money because they are concerned about running out of money.

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______ is a way of orchestrating value activities in which a firm is backwardly or forwardly integrated and relies on outside-market firms for supplies or distribution.

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Taper integration is a way of orchestrating value activities in which a firm is backwardly or forwardly integrated and relies on outside-market firms for supplies or distribution.

Organization theory uses the term "tapered integration" to describe a combination of vertical integration and market interchange. A producer upstream may generate some of the input themselves and purchase the remaining amount from independent businesses.

What three forms of vertical integration are there?

Result for Taper integration in an image

There are three types of vertical integration: balanced vertical integration, which includes both upstream and downstream integration, and backward vertical integration, which occurs upstream.

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Which of the following is one of the factors of production?
a.money
b.shares of stock
c.business
d.natural resources

Answers

Answer:

the answer of that question is

LETTER, C. BUSINESS

Explanation:

please correct me if im wrong because im not very brainly but im so handsome

.astore sold 14 more colored shirts than white shirts. the white shirt cost$9.95 and colors cost $10.50. if atotal of $310.60 weresold, how many of each type were sold?

Answers

The likelihood of receiving either "heads" or "tails" is 1/2 (sometimes expressed as 0.5 or 50%).

The area of mathematics known as probability deals with numerical representations of the likelihood that an event will occur or that a statement is true. An event's probability is a number between 0 and 1, where, roughly speaking, 0 denotes the event's impossibility and 1 denotes certainty. The likelihood that an event will occur increases with its probability. A straightforward illustration is tossing a fair (impartial) coin. Since there are no other conceivable outcomes and the coin is fair, the possibilities "heads" and "tails" are equally likely; hence, the probability of "heads" equals the probability of "tails."

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West company has $200 cash, $1,200 land, $600 liabilities and $800 stockholders' equity. west has earned profits every year since its inception. based on this information, ______.

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Based on this information, West may be forced to sell its land in order to pay its debt.

What are debts and assets?

Liabilities are future benefits that would have to be sacrificed in the future by an entity to other entities as a result of past transactions.

An asset is a resource that is owned by a business that can be used to create economic value of the economic actor. Cash is an example of a liquid asset. Land is an illiquid asset.

Stockholders equity is the difference between assets and liabilities. Even though, assets is greater than liabilities, the liquid asset is less than liability. Thus, the business might have to sell its land to pay the debt.

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A firm is an organization that transforms resources into products. these agents:_____.

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A firm is an organization that transforms resources into products. these agents are the primary producing units in a market economy.

What are firms?

Firms are organizations in a country that take resources and then put them through productive processes to be able to transform them into products that are either intermediate or final. Either way, these products satisfy the needs and wants of people.

As a result of firms being the ones behind production in an economy, they are the primary producing units that are available in a market economy. This is because firms are private and it is the private entities that produce in a market economy.

Options for this question are:

A. produce these products simply to provide the highest profit possible to their shareholders. B. transform outputs into inputs in order to sell the inputs to other firms, which create products to sell to consumers. c. are only found in product markets. D. are the primary producing units in a market economy

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Randolph waters operates a watch repair business in mesa, arizona. He orders most of the watch parts from out-of-state suppliers. he orders watch faces from a supplier in escondido, california. The supplier does not have a sales force but relies on catalogs shipped to watch dealers throughout the country as his means of marketing. Randolph installed several of the supplier's watch faces on his customers' watches. A strange chemical reaction between perspiration and the faces of the watches caused randolph's customers to develop rashes and nausea, with some requiring hospitalization. Randolph wishes to bring suit to recover damages ($100,000) from the escondido supplier. Which of the following statements is true of this scenario? a. randolph must bring suit in california to gain jurisdiction over the supplier. b. randolph has a diversity action that can be brought in federal court. c. randolph will not be able to bring suit in arizona because there are no contacts in the state. d. randolph must bring suit in arizona state court.

Answers

The option Randolph has a diversity action that can be brought in federal court is a true statement

Option C is correct .

Federal Court :

Federal courts are courts of special jurisdiction, meaning they can only hear cases sanctioned by the United States Constitution or federal statutes. The federal district court is the commencement for any case arising under federal statutes, the Constitution, or treaties

What is the jurisdiction of a state?

Jurisdiction refers to the strength of a state to work on persons, property, and circumstances within its territory. It may be utilized through legislative, executive, or judicial actions.

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Offering credit to buyers and providing refund services for products are both examples of ________ functions provided by channel intermediaries.

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Offering credit to buyers and providing refund services for products are both examples of Facilitating functions provided by channel intermediaries.

What are channel intermediaries?

The organizations and people who provide channels for consumers to obtain items are known as channel intermediates. Depending on the firm that owns the goods and the method of delivery chosen to reach clients, the distribution procedure for a given good can differ. Anyone interested in working in marketing or distribution will benefit from being aware of the parties involved in this process and how they distribute goods. In this piece, we define intermediary marketing channels and channel intermediaries, as well as their various forms.

They are the outside organizations, people, and companies who assist a firm in supplying its goods to clients. Between the maker of the original product and the customer who makes the most recent purchase, they serve as intermediaries. Channel intermediaries are a crucial component of the distribution process since businesses require them to deliver items to their customers.

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When redesigning a database, how can we check assumptions about functional dependencies?

Answers

Use a correlated subquery with the SQL IN keyword for the first approach, and use a correlated subquery structure with the SQL EXISTS and/or NOT EXISTS keywords for the second approach.

What do you mean by  Structured Query Language (SQL)?

Relational databases are managed and the data they contain can be subjected to a variety of procedures using SQL, a standardized programming language. SQL is frequently used by database administrators, programmers writing scripts for data integration, and data analysts setting up and running analytical queries. SQL was originally developed in the 1970s.

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Brown company purchased $900 of supplies on credit. illustrate how to record the transaction to t-accounts by completing the following sentence. accounts payable would be?

Answers

The statement has been completed as follows:-

Accounts payable would be credited on the right side and supplies would be debited on the left side.

What is accounts payable?

Accounts payable (AP) is a financial word that refers to the money owing to suppliers or vendors for products or services acquired on credit. It is the bill that company needs to pay.

Accounts payable which are also known as Bills payables are credited on the right side, while supplies are debited on the left. Therefore, it can be concluded that  payable would be credited and supplies would be debited in the journal entry.

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Your question is incomplete, but most probably the full question was….

Accounts payable would be ______on the ____ side and supplies would be ______on the _____side

Which basic production planning strategy avoids hiring and layoff costs and the costs of excess capacity?

Answers

The basic production planning strategy that avoids hiring and layoff costs and the costs of excess capacity is C. Subcontracting.

What is subcontracting?

Subcontracting refers to when labor is outsourced to another company that is often not in the same nation as the country where the business is based.

This means that the company that is doing the outsourcing will not have to hire people themselves and so can avoid costs like hiring and layoff costs as well as costs resulting from excess capacity.

Options for this question include:

A) demand matchingB) operation smoothingC) subcontractingD) all of the aboveE) none of the above

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Marginal social cost is defined as:_____.
a. marginal private cost plus opportunity cost.
b. plus marginal opportunity cost.
c. minus incidental cost.
d. plus incidental cost.

Answers

Marginal social cost is defined as the marginal private cost plus the opportunity cost.

When an extra or additional unit of a good or service this produced brings about a change in society's total cost. This change in society's total cost is called marginal social cost. This includes both the opportunity cost and the marginal private cost. So it is the total of the private cost and the external cost that the person has to pay.

Marginal private cost is the change in the total cost of the producer due to the production of an additional unit of a good or service. This cost is also known as the marginal cost of production For example if the production of a person's costs rises from$1,000 to $1,050 due to the production of this one good being produced for $50 is known as the marginal private cost.

The opportunity cost is the benefit the person would have gotten if he would have invested the money elsewhere. For example, if the person has an extra $50. He can either invest it in the business or he can invest it in the bank and get the interest. The interest money that the person has to forgo is called the opportunity cost.

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The nation of alpha does not take seriously the gathering and publishing of its economic statistics. this creates?

Answers

The nation of alpha does not bring seriously the gathering and publishing of its economic statistics. This forms uncertainty about forecasts, causing business firms to invest less.

What is meant by Business Forecasts?

Business forecasting is the process of predicting future market circumstances by analyzing historical data using business intelligence tools and forecasting techniques. Forecasting in business can be qualitative or quantitative. The process of predicting changes in a firm, such as sales, expenses, profits, and losses, is known as business forecasting.

Business forecasting aims to create better plans based on these knowledgeable projections, assisting in the prevention of probable failure or losses. The gathering, processing, compilation, dissemination, and analysis of economic data are the topics of applied statistics and applied economics. It has a close connection to econometrics and business statistics.

Hence, The nation of alpha does not bring seriously the gathering and publishing of its economic statistics. This forms uncertainty about forecasts, causing business firms to invest less.

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Why does a diverse and inclusive workforce benefit a firm supporting a global market?

Answers

A diverse and inclusive workforce benefit a firm supporting a global market. A variety of language skills serves the global customer base well

    You may acquire in-depth local market knowledge, cultural insights, local networks, and alternate solutions to bottlenecks by assembling a diversified workforce. Having the right team means that you grasp the demands, channels, and preferences in the local context, which is necessary to sell successfully in global markets.

   We now live in a new, interconnected world where everyone competes with everyone else for everything. This is particularly true for SaaS businesses and internet-based services, where there are few entry requirements if you have a laptop, an internet connection, and coding skills. Tech companies that want to grow swiftly need methods and approaches for entering and serving new markets quickly while avoiding the numerous difficulties associated with establishing a global market.

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Variable costs blank______.

Answers

Variable costs are also known as mixed costs. An expense for the company that varies according to how much is produced or sold is called a variable cost.

Describe what you mean by variable cost.

An expense for the company that varies according to how much is produced or sold is called a variable cost. Variable costs rise or fall in relation to a company's output or sales volume. They expand in accordance with production and contract in accordance with production.

Variable costs include things like raw materials, piece-rate labor, production supplies, commissions, shipping costs, packing costs, and credit card fees.

Costs or expenses that are fixed do not alter as a result of shifts in production or sales volume. Just a few examples of the expenses they pay include rent, insurance, dues and subscriptions, equipment leases, loan payments, depreciation, management salaries, and advertising.

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Firms are buyers and households are sellers in the _____ market.
a. stock
b. bond
c. labor product
d. underground

Answers

Firms are buyers and households are sellers in the bond market. Option B

This is further explained below.

What is the bond market.?

Generally, The bond market is a financial marketplace where respondents can issue new debt, recognized as the primary market, or buy and sell treasury bonds, known as the secondary market.

This debt is typically issued in the form of bonds, but it may also take the form of notes, bills, and other financial instruments for both public and private expenditures.

 

In conclusion, On the bond market, businesses are buyers, while individuals and families are sellers. Alternative B

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What is the dollar-amount limit on federal question cases that can be brought in federal court?
a. $500,000
b. $250,000
c. there is no dollar-amount limit.
d. $1 million
e. $75,000

Answers

There is no dollar-amount limit on the federal question cases that can be brought in federal court.

What is a federal court?

This refers to the court that had an exclusive original jurisdiction in any dispute between the Central Government and the Provinces.

The amount of damages for a case in controversy must be more than $75,000, that is,  If the amount you seek to recover is $75,000.00 or less, you cannot file your action in federal court. Therefore, there is no dollar-amount limit on the federal question cases that can be brought in federal court.

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Investment banking firms provide:________
a. auditing services.
b. overdraft facility.
c. insurance.
d. underwriting services.

Answers

Investment banking firms provide underwriting services (option d).

What are investment banks?

Investment banks are financial institution that provides services to businesses, individuals and the government. The services they provide include:

raise capital for new companies by underwriting their initial public offersfinancial consultancyoversees mergersthey match investors with sellers. This increase the liquidity of the financial markets.

Examples of investment banks include  Bank of America, Credit Suisse, and Deutsche Bank.

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Product costs consist of all of the following except:_______
a. direct materials.
b. direct labor.
c. factory overhead.
d. dividends.

Answers

Dividends are not included in Product cost whereas  direct materials, direct labor and factory overhead are included while calculating the Product cost .

What is Product costs ?

The cost incurred to produce a product are referred to as product  cost. Direct labor, direct materials, consumable production supplies, and factory overhead all are included in these prices. The cost of the labor necessary to provide a service to a customer can also be considered when calculating product cost. In the latter scenario, all cost involved with a service, such as compensation, payroll taxes, and employee benefits, ought to be included in the product cost.

Since product cost contains the amount of effort that is required by both GAAP and IFRS, it is included in the financial statements. When deciding on short-term production and sale-price strategies, however, managers may alter product costs to eliminate the overhead component.

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A 20-year-old woman has a bottle of wine along with her other groceries that she is purchasing. is this a legal off-premise sale of alcohol?

Answers

No, Alcohol cannot be bought or attempted to be bought by minors. Anyone under 21 is considered a minor for the purposes of alcohol sales.

The Twenty-first Amendment to the American Constitution gives each state and territory in the country the authority to control alcoholic beverages that are consumed inside their borders. As a result, there are considerable regional differences in the regulations governing the manufacture, marketing, distribution, and use of alcoholic beverages.

The National Minimum Age Limit Act was passed on July 17, 1984. The Act stipulates that all states must establish their minimum age for purchasing alcoholic drinks and their minimum age for having alcoholic drinks, publicly to no lower than 21 years of age, or else they would forfeit 10% (Changed to 8% in 2012) of their allotted federal transportation money.

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When it comes to communication skills, employers express particular frustration with?

Answers

When it comes to communication skills, employers express particular frustration with experienced workers who shun new technologies.

Communication is the act of giving, receiving, and sharing information. That is speaking, writing, listening, and reading. Good communicators listen carefully, speak and write clearly, and respect different opinions. A communication process refers to the sequence of actions or steps taken to achieve successful communication. It includes several components such as the sender of the communication, the actual message being sent, the encoding of the message, the receiver of the message, and the decoding of the message.

Communication is defined as giving, receiving, or exchanging information, opinions, or ideas so that the message is fully understood by all parties involved. Communication is a two-way process and includes the sender, message, channel, recipient, feedback, and context.

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The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called:_________

Answers

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called Insuring agreement

What do you mean by Insuring Agreement?

The "Insuring Agreement" of the insurance policy outlines the insurer's obligation to make payments to the insured or on their behalf. The insuring agreement is typically included in the coverage form from which a policy is derived. Insurance policies frequently offer a wide range of protection, which is then limited by exclusions and limitations.

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