Suppose a perpetuity bond with a face value of $1,000 has a 10% coupon rate. If market interest rates fall to 8%, the price of the bond
A. rises to $1,080.
B. falls to $750.
C. stays at $1,000.
D. rises to $1,250.​

Answers

Answer 1

Answer: rises to $1,250.​

Explanation:

From the information given,

Annual coupon, C will be calculated as:

= $1000 × 10%

= $1000 × 0.1

= $100

Market Interest rate, i = 8%

The price of the bond will be:

= Annual coupon/Interest rate

= $100/8%

= $100/0.08

= $1250

Therefore, the price of the bond rises to $1,250.​ The correct option is D.


Related Questions

What is manifest destiny?

Answers

Manifest Destiny is the belief that Americans had the right, or even the duty, to expand westward across the North American continent from the Atlantic Ocean to the Pacific Ocean. This would spread the glorious institutions of civilization and democracy to the barbaric Native Americans.

Answer: Imperialist phrase first used in 1845 to urge annexation of Texas; used thereafter to encourage American settlement of European colonial and Indian lands in the Great Plains and Far West; Created by John L. O'Sullivan; "overspread the continent allotted by Providence (God) for the free development of our yearly multiplying millions"

Explanation: Hope this helps :)

why is it important for people to understand and be knowledgeable about their cultural roots?​

Answers

Answer:

Answer In Explanation

Explanation:

This is in total your own opinion. In my opinion, it´s important to know where you come from. You should always know your culture because it defines you.

If they didn’t they wouldn’t know anything about themselves or how to act

What is a religious group

Answers

Answer:

a group that has their own beliefs and rules

Answer:a subgroup within a religion that operates under a common name, tradition, and identity

Explanation:

You are the president of a corporation that owns several large
department stores. A board member has a plan for preventing
shoplifting: In each store, play musical soundtracks containing
subaudible and consciously imperceptible verbal messages such as
"don't steal" and "shoplifting is a crime." Carefully discuss your
reasons for supporting or rejecting this proposal to engage in
subliminal persuasion.

Answers

Answer:

See below

Explanation:

You want this subliminal messages in the songs so that people are less likely to steal and buy more instead, reducing theft and thus increasing profits.

how is product presentation done by retailers

Answers

Answer:

Your presentation might focus on a product that's new to you and your company. You must learn as much about it as possible so that your knowledge is apparent to potential buyers.

Explanation:

Master the margins. ...

Visit the store in person to make your pitch. ...

Bring samples of actual products, or at the very least, photographs. ...

Grasp the retailer's competitive advantages in the marketplace. ...

Have a sell sheet. ...

Prioritize your packaging. ...

Show your marketing might.

Answer:

Explanation:

Master the margins. ...

Visit the store in person to make your pitch. ...

Bring samples of actual products, or at the very least, photographs. ...

Grasp the retailer's competitive advantages in the marketplace. ...

Have a sell sheet. ...

Prioritize your packaging. ...

Show your marketing might.

list one power that is held by each branch of our government.

Answers

Answer:

The legislative branch is made up of the House and Senate

Congress

Explanation:

How do authors organize information in a science article to show how events are related?

Answers

Answer:

Chronologically. They usually tend to organize information into groups of events that took place at a similar time. Oldest to most recent events, perhaps with slight reflections and differences here and there.

I hope this is the answer you were looking for.

list ways in which the Greek influence the romas ​

Answers

Answer:

here you go I hope that this can help you in some way

What happened to the colonsts that lived out In the west?​
fast answer pls

Answers

They settled. What do you think? Thats a pretty simple answer.

What feature is typical of the Gupta Empire under the rule of Chandra Gupta Il?

People were forced to work for the government.

People were treated unfairly
and
stripped of their rights



People were viewed
equally no matter their social class.

Answers

Answer:

pretty sure its D

Explanation:

good luck! and, do your best!

Which characteristics correctly describes the free people of color in the 1800s? Check all that apply.

Answers

Answer:

workers farmers military or looking for family

Explanation:

what applies?

Answer:

The answers are:

They faced discrimination despite having their freedom.

They often lived within tight-knit communities with their own customs.

and

They included Creoles, or people with ancestors from another country.

Hope this helped!

What is your decision? To go to college or to go to work?
What are your alternatives? (college choices, employers)
What are the criteria that are most important to you in choosing a college or job? (list is below)
What do you believe you will choose and why?


i will give brainlest if you answer all of them

Answers

Answer:

i would go to college cause after i can get a higher job

Explanation:

What is an example of a way people can conserve oil resources?

Answers

Answer:

By reusing things, by recycling materials and by minimization consumption

Explanation:

Answer: biomass, geothermal, hydro, nuclear, solar, and wind energy sources.

Explanation:

These energy sources are not fossil fuels. If people leaned more to these than oil or coal, we could conserve them for global  emergencies.

plz help me 20 points if you answer me i give brainlest. in a given year, the value of a dollar rises against other foreign countries. this is most likely the result of which of the following?
the Byrd rule
a balanced budget
the PAYGO system
entitlement programs

Answers

Answer:

I think it is the Byrd rule

Explanation:

Answer:

A the Byrd Rule

Explanation:

Im did he test hope tis helps

Why was the Battle of Gettysburg a turning point in the Civil War

Answers

Answer:

Gettysburg Was the Turning Point of the War . The Battle of Gettysburg fought on July 1–3, 1863, was the turning point of the Civil War for one main reason: Robert E. Lee's plan to invade the North and force an immediate end to the war failed.

Arnold fled to the British and attacked ___, Virginia. plssssssssssssss helppp me

Answers

the answer is Richmond

Answer:

Correct Answer is Richmond

Choose the correct definite article for the following noun.
El
la
los
las

Answers

I think la hope that’s right

Answer: It's "La".

Explanation:

Hope This Helps!!!

Have a great rest of your day!

Canada's ocean coastlines, rivers, and lakes provide it with which natural
resource?
A. Minerals
B. Coal
C. Fish
D. Timber

Answers

Answer:the answer is C Fish

Explanation:

Answer:

c

Explanation:

what is morality? In your own words.​

Answers

Answer:

Define morality and ethics in your own words. Morality refers to guidelines that you can use to determine what you ought to do in a particular situation. Morality also allows you to figure out whether a particular decision or action is right or wrong. ... Morality is focused on solving particular problems.

Explanation:

morality has to do with the way we love our lives . it is about what is right and wrong, good and bad. for example : a moral person is someone who knows what is she or wrong and chooses to do the right thing, a i moral person is someone who knows what is wrong and right and chooses to do the wrong thing

What instruments are used by scientists to measure wind speed

Answers

An anemometer is an instrument that measures wind speed and wind pressure. Anemometers are important tools for meteorologists, who study weather patterns.

The Democratic Party consisted of _________ individuals

Answers

Answer:

49% of individuals, correct me if i am wrong!

Explanation:

49% percent of individuals

Caleb has been regularly listening to a popular weekly podcast on political issues and current events produced
and hosted by the well-known journalist Ezra Klein. Over time, Caleb has noticed that his political opinions have
become increasingly similar to Klein's. A sociologist would describe Ezra Klein as a
a. power elite
O b. simulacrum
c gerrymander
d. opinion leader

Answers

Answer:

A sociologist would describe Ezra Klein as a:

d. opinion leader.

Explanation:

According to the passage, Ezra Klein was able to influence Caleb's opinions informally. With time, Caleb has started to think more and more like Klein. This is described in sociology by the term opinion leadership. An opinion leader is someone who is capable of influencing and persuading others to think and act in a way that is in accordance to his own opinions and preferences.

Question 5 of 25
One of the major positive effects of globalization is:
A. economic growth through increased international trade.
B. less economic competition between different countries.
C. countries developing greater economic self-sufficiency.
D. decreased environmental damage from burning fossil fuels.

Answers

A.economic growth through increased international trade

One of the major positive effects of globalization is economic growth through increased international trade. Therefore, option A is the correct option.

What Is Globalization?

Globalization is the process of interacting and integrating with companies, governments, and people in order to increase their support for one another. The process of globalization became more familiar in the latter half of the 1950s when many nations achieved independence from their colonial masters and, after some time, became part of global trade.

The popularization of globalization is also credited with the growth of technology in general and information technology in particular. Globalization has impacted not only the economic aspects of the world but also the social aspects as well.

Therefore, one of the major positive effects of globalization is economic growth through increased international trade. Therefore, option A is the correct option.

To learn more about globalization, visit the link below;

https://brainly.com/question/13567816

#SPJ2

According to Adam Smith, how does self-interest benefit society?

Answers

Answer:

1. Amusement Parks

2. Grocery Stores

3. Restaurants

Explanation:

These three topics are very similar. Why? They all benefit our community with the power of self interest! If we didn't have these things many countries would go bankrupt! These topics pay for almost everything.

Which of the following statement is true about all cells? They are all part of tissues. They are all part of tissues. They all contain chloroplasts. They all contain chloroplasts. They all have a cell wall. They all have a cell wall. They all have a cell membrane.

Answers

Answer:

They all have a cell membrane

Explanation:

Read the sentence. He spends a great deal of time studying and completing his homework. In this sentence, "he” is a reflexive pronoun. reciprocal pronoun. subjective pronoun. possessive pronoun.

Answers

Answer:

c subjective pronoun

Explanation:

I took the quiz

In the given sentence "He spends a great deal of time studying and completing his homework", where he is a subjective pronoun.

What do you mean by a sentence?

A sentence refers to the set of words that contains a subject and predicate consisting of a main clause and subordinate clause.

In the given sentence, he spends a great deal of time studying and completing his homework "He" is a subjective pronoun.

Therefore, C is the correct option.

Learn more about Sentence here:

https://brainly.com/question/696177

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Question 4 of 5
What is one of the major geographic features of Pacific South America?
A. Enormous rain forests
B. Flat, fertile farmland
,
C. Frozen tundra and glaciers
O D. Deserts with little moisture

Answers

A. Enormous rain forests

Hope this helps ;)

Answer:

Explanation:

Deserts with a little moisture

Citing a source can help you to do what?
O use a work fairly
identify a resource
o judge the credibility of a source
O register a copyright

Answers

Answer:

use a work fairly

Explanation:

took the quiz

Answer:

a. use a work fairly

Explanation:

got it right on edge

Which of the following statements best describes the French and Indian War

Answers

Answer:

Which one of the following statements best describes the French and Indian War ? The war was fought in Europe and ..

What is a long-term policy goal of the interest group?
A. Influencing political appointments
B. Regulating elections
C. Electing candidates
D. Ensuring rights for all

Answers

Answer: C. Electing candidates

Explanation:

Short term goals are those goals to be accomplished in the immediate future which means within the next year. Long term goals are to be accomplished after a year and are usually the result of various short term goals.

From the picture it is seen that the short term goal of the group is to get people to register to vote. The long term goal can therefore be said to be to elect candidates because only after people are registered to vote can they vote.  

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