Explanation:
One example of a popular magazine is the New York Times magazine which has an offline subscription and a newsstand edition.
Advantages of online edition:
broader audience reach: this means that the magazine could be accessed on a global scale since it could be easily downloaded online from anywhere in the world.lower printing/distribution cost: rather than spending more money printing physical copies of the magazine, the publishers simply place or send digital copies online for download by their subscribers.Disadvantages of online edition:
increased risk of copyright infringement (plagiarism): since copies are made in digital format, it is easier for others to reproduce copies of the magazine without the express permission of the publishers.Using the midpoint method, calculate the price elasticity of demand for Gondwanaland gosum berries. Explain what this price elasticity of demand means
Answer:
The data of the question is this:
YEAR Gosum Berries Price Per
Demand Barrel
107 700 $70
108 600 $84
Explanation:
The Mid-Point Formula to calculate the Price Elasticity of Demand is:
[ (Q2 - Q1) / (Q2 + Q1) / 2 ] this divided by [ (P2 - P1) / (P2 + P1) / 2 ]
where Q is demand, and P is price
Now, we plug the amounts into the formulas:
[ (600 - 700) / (600 + 700) / 2 ] = -0.038
[ (84 - 70) / (84 + 70) / 2 ] = 0.045
-0.038 / 0.045 = -0.844
Thus, the elasticity of demand for gosum berries, using the midpoint method, is -0.844, however, economists use absolute values for elasticities, so -0.844 becomes 0.844
An elasticity of demand of 0.844, which is less than one, indicates inelastic demand. This means that the quantity demanded for gosum berries falls less in proportion to raises in price.
In order worlds, the coefficient of elasticity of demand measures the price sensitivity of consumer demand for a particular good or service.
Governor Patrick Cote of Vermont is beginning his primary campaign for the presidency and is considering whether or not to accept public funds set aside for primary candidates in the Presidential Election Campaign Fund. Cote is concerned that his primary opponents may forgo revenue from the fund with the hope of raising money beyond its established limits. From which group could Cote solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund
Question Completion with Options:
a. Political action committees
b. Professional organizations
c. Corporations
d. Labor unions
Answer:
The group from which Cote could solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund is called:
Political action committees
Explanation:
A political action committee is a committee set up primarily to raise funds for the political campaign of a candidate. The committee collects funds from various individuals, better called contributors, and then distributes the funds to candidates who support the same ideals as the contributors. The establishment of a political action committee by supporters of a political aspirant enables the committee to collect funds for distribution to a candidate's political course. The committee is established based on ideology and political interests.
Matthew purchased a new piece of equipment to be used in its new facility. The $400,000 piece of equipment was purchased with a $40,000 down payment and with cash received through the issuance of a $360,000, 9%, 5-year mortgage payable issued on January 1, 2022. The terms provide for annual installment payments of $92,553 on December 31.
Required:
Prepare an installment payments schedule for the first five payments of the notes payable.
Answer:
The ending balance after the first five payments of the notes payable is $1.70.
Explanation:
Note: See the attached excel file for the installment payments schedule for the first five payments of the notes payable.
In the attached excel file, the following are calculated as follows:
Beginning balance for the year 2022 = Value of the note payable
For other years, Beginning balance for a particular year = Previous year's ending balance
Interest expense for each year = Beginning balance for each year * Interest rate
Principal paid for each year = Annual installment - Interest expense for each year
Ending balance for each year = Beginning balance for each year - Principal paid for each year
From the attached excel file, the ending balance after the first five payments of the notes payable is $1.70.
One of the toughest problems in investigating systems requirements is ensuring that they are complete and comprehensive. Imagine that you are a systems analyst. Decide the primary way in which you would ensure that you secure the necessary information during an interview session with a client. Devise a plan for accommodating conflicting responses for the same procedure from two different people you interviewe
Answer:
A) One of the most professional ways of acquiring information from a client during an interview is to approach the exercise in a semi-structured manner.
B) In order to accommodate conflicting responses from the same procedure from two different people, it is important to seek to understand what their interests are.
Explanation:
A) Semi-structured questions allow flexibility. Though the business analyst comes to the table with a set of pre-determined questions, they must be prepared to go outside of that list in order to get to the root of the problem which the clients needs to solve.
Another job of the analyst is to see beyond the immediate needs of the client and communicate to them, based on the information they provided any other problem that needs to be catered to.
Recording all information provided by the respondent is mission-critical.
B) Clarity of interests helps the analyst to determine what approach is best for accomodating both responses.
Cheers
A rise in the price of Pepsi that causes a household to shift its purchasing pattern toward Coke and away from Pepsi is the ________ effect of a price change. A) income B) substitution C) complementary D) diminishing marginal utility
Answer:
B
Explanation:
Substitution effect is the change in demand as a result of the change in the price of a good relative to the price of another good.
As a result of the increase in price of Pepsi, the demand for coke increases. This is an example of substitution effect
1. When you played the New York City Budget game, how did this change your opinion on how governments operate cities? What are some of the ways a city can earn revenue?
2. What are the similarities and differences between balancing a city budget and balancing a personal budget?
1. What are the three key assets that Walmart can leverage (build on) to compete with Amazon and other online retailers
Answer:
The 3 important assets that Walmart can be used to remain competitive with Amazon have been listed below.
Explanation:
Driven by the increasing utilization of internet shopping, retail chains, together with Walmart, were concerned about its business model. However, as Walmart is still in a safe stance and has been for some moment, it could be said that this same corporation does have some methodologies to encourage Amazon, its biggest throughout the world corporation.
Walmart seems to have the biggest independent water channel transportation system. It would have the fastest-growing traditional retail stores across the U.S. Just because of this, this has become a density. Also, this same strategy will enhance the percentage of warehouses and therefore a retail distribution channel.The three key assets that Walmart can leverage (build on) to compete with Amazon and other online retailers are:
Employee: Making a good and large investment of time, training and money in educating, developing and managing its employees will give them a good advantage over AmazonTheir chains of stores: Walmart believes that their over 40,000 chains of stores as one of their key asset. the improvement of the interior and exterior of the stores, coordination and management will be a good advantage also.Walmart’s e-commerce: This is a major key asset of Walmat. Developing their e-commerce strategy to the best-in-class e-commerce and linking it with the assets of the retail organization can take them higher.
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Trends that have contributed to the recent increase in eating disorders in the United States include a(n): a. More competitive workplace b. Increase in the number of divorces c. Focus on being thin as a measure of attractiveness d. Increase in the number of nonnutritional foods consumed ANS: C In most modern societies, a high value is placed on a slim body.
Answer:
The answer is "Option C".
Explanation:
In the US, mental illnesses have increasingly been on the rise, including patterns that are highly valuable in most modern societies. Anorexia and bipolar disorder are also included. These are complicated, severe but potentially destructive. These are also the result of a complex confluence of things such as biology, cell biology, sociology, culture, and the environment.
Q.2Tullahoma Company purchased equipment for $27,500. It depreciated the equipment over a fiveyear life by the double-declining-balance method until the end of the second year, at which time the asset was sold for $8,500. Calculate the gain or loss on the sale at the end of the second year.
Answer:
A loss of $1400
Explanation:
The double-declining method uses twice the straight-line depreciation method rate in calculating the depreciation amount.
The asset has a useful life of 5 years. The straight-line depreciation rate = 1/5 x 100
=20%.
The double-declining rate will be 40%
The depreciation schedule for two years will be as follows.
Open. Bal Dep. rate Dep. Amount Book value
$27,500 40% $11,000 $16,500.00
$16,500 40% $6,600 $9,900.00
The equipment was sold for $8,500
net gain or loss will be the selling price - book value
=$8,500 - $9,900
=- $1,400
A loss of $1400
J.D. Power and Associates surveys new automobile owners to learn about the quality of recently purchased vehicles. The following questions were asked in the J.D. Power Initial Quality Survey, May 2012?
a. Did you purchase or lease the vehicle?
b. What price did you pay?
c. What is the overall attractiveness of your vehicle's exterior? (Unacceptable, Average,
Outstanding, or Truly Exceptional)
d. What is your average miles-per-gallon?
e. What is your overall rating of your new vehicle? (l- to 10-point scale with 1 Unacceptable and 10 Truly Exceptional)
Comment on whether each question provides categorical or quantitative data.
Answer:
a. Did you purchase or lease the vehicle? CATEGORICAL DATA
b. What price did you pay? QUANTITATIVE DATA
c. What is the overall attractiveness of your vehicle's exterior? (Unacceptable, Average, Outstanding, or Truly Exceptional) CATEGORICAL DATA
d. What is your average miles-per-gallon? QUANTITATIVE DATA
e. What is your overall rating of your new vehicle? (l- to 10-point scale with 1 Unacceptable and 10 Truly Exceptional) QUANTITATIVE DATA
Explanation:
Quantitative data can be measured in numbers, e.g. 20 miles per gallon. While categorical data refers to non-numerical responses, e.g. higher quality, better looks, and is generally obtained by choosing one response from a group of available answers.
How does QuickBooks Online use machine learning in its reconciliation tool to help find any hidden transactions
Answer: b. It can identify transactions where the transaction date is in a future period and the cleared date is in the statement period .
Explanation:
QuickBooks online uses machine learning based on the transactions that it conducts with its millions of users so that it provides a better experience for those same users.
One way machine learning is used is in reconciliation where it identifies transactions that may have a future date but by virtue of their clearing dates should be in the current period and so may have been hidden.
How does GDP accounting record the following events? For each of them, describe how they would be computed in GDP accounts using the income method, the production method, and the expenditure method.
a. Tom purchases a brand new Volkswagen from Germany for his start up ride sharing business for $20,000. He provides ride-sharing services earning him revenues of $40,000. During the course of the year, the Volkswagen depreciates by $2,000. Tom has no other costs.
b. An army battalion is deployed to the border to repel a threatened Canadian invasion. The soldiers earn wages of $10,000 and use ammunition that the government bought for $5,000. The ammunition was produced using $2,000 of imported steel and 100 hours of work, for which the workers were paid $1,000. Hint: two things are produced in this example, what is the value added for each of them?
c. The government collects $1000 in income taxes from Pam.
d. Pam earns $4000 for working as a babysitter and pays $1000 in income taxes.
Answer:
a. Tom purchases a brand new Volkswagen from Germany for his start up ride sharing business for $20,000. He provides ride-sharing services earning him revenues of $40,000. During the course of the year, the Volkswagen depreciates by $2,000. Tom has no other costs.
GDP increases by $20,000:
It will increase $40,000 by the services provided (consumption) but will decrease $20,000 due to the imported car (negative net exports).
b. An army battalion is deployed to the border to repel a threatened Canadian invasion. The soldiers earn wages of $10,000 and use ammunition that the government bought for $5,000. The ammunition was produced using $2,000 of imported steel and 100 hours of work, for which the workers were paid $1,000. Hint: two things are produced in this example, what is the value added for each of them?
GDP increases by $13,000:
Government spending increases by $15,000.
Net imports decrease by $2,000.
c. The government collects $1000 in income taxes from Pam.
GDP doesn't change. Taxes are not included in the GDP
d. Pam earns $4000 for working as a babysitter and pays $1000 in income taxes.
GDP increases by $4,000 (consumption).
Whispering Winds Corporation owns equipment that cost $64,800 when purchased on April 1, 2013. Depreciation has been recorded at a rate of $10,800 per year, resulting in a balance in accumulated depreciation of $51,300 at December 31, 2017. The equipment is sold on July 1, 2018, for $12,960. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale
Answer:
(a) update depreciation for 2018
Debit ; Depreciation $10,800
Credit Accumulated Depreciation $10,800
(b) record the sale
Debit : Cash $12,960
Debit : Accumulated Depreciation $62,100
Credit : Profit and Loss $10,260
Credit : Equipment at Cost $64,800
Explanation:
(a) update depreciation for 2018
Recognize deprecation
(b) record the sale
Recognize proceeds from sale and profit or loss from sale
QUESTION 10 of 10: Good market research can help you determine your break-even point, which is: a) When variable costs equal fixed costs b) When even one more problem will break you c) The point at the geometric center of your target customer base d) The number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
Answer:
d) The number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
Explanation:
Breakeven analysis can be defined as a financial accounting method or technique used for determining the number of units a business firm must sell at a specific price so as to cover all of its costs. It is a concept that allow business owners or financial experts to determine and know what they need to sell either on a monthly or annual (yearly) basis, in order to be able to cover the costs of doing the business.
Basically, it helps us to determine the amount of revenue required for the smooth operation of a business, amount of money needed to cover both fixed and variable costs. Using the breakeven analysis, production costs can be categorized as;
1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.
2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.
Hence, a good market research can help you determine your break-even point, which typically is the number of units you need to sell, taking into account variable costs, in order to cover fixed costs.
Which option identifies what can be inferred about Sophie's degree from the following scenario?
Sophie has graduated and obtained a job in the survey research field. She oversees a team of researchers who analyze the effectiveness of survey methodologies for a large market research
mirm.
O Sophie eamed a degree in survey methodology
O Sophie camed a professional researcher certification,
O Sophie eamed a bachelor's degree
O Sophie eamed an advanced degree
Answer:
O Sophie earned a degree in survey methodology
Explanation:
Sophie is a manager in the survey company. Her team is made up of researchers who analyze the effectiveness of survey methodologies. For Sophie to effectively manage a team of researchers, she needs to be good at research work. This suggests that Sophie must have graduated with a degree in survey methodology. The minimum requirement for a manager in many professions is a degree in the relevant field of study.
The answer is NOT:
Sophie earned a professional researcher certification.
If the price of imports rose, caused by a change in the value
of the pound then the AS would shift to the:
Select one:
a. None of the above
b. right
C. left
d. vertically
= left
Why do overhead costs often shift from high-volume products to low-volume products when a company switches from a conventional costing method to activity-based costing
Answer:
When a company is using conventional costing methods, the costs are allocated based on volume so those products with a high volume will get a higher share of the costs.
When Activity-based costing is used however, costs are assigned more accurately which will lead to the actual products that are causing the costs incurring them instead of those high-volume products so it will appear as though overhead costs have shifted from high-volume products to low-volume products.
How do firms operating in the formal economy identify and analyze the parts of the informal economy relevant to their strategies
Answer:
Business forms strategy to earn profits. Formal economy restricts business from extra ordinary profits and the business activities are regulated by government.
Explanation:
Formal economy focuses on commercial activities that generate government taxes. In informal economy the businesses are not regulated and taxes are not paid. The competition is distorted in the market and business make unfair profits. Informal economy poses a threat to formal economy system.
Select the correct answer.
Workers like authoritarian leaders best.
A True
B. False
Answer:
False
Explanation:
In autocratic leadership, the leader or manager does not allow the team members to contribute to the group's decisions. It is also known as authoritarian leadership. The leader issues command-like instructions that must be followed by everyone.
In general, workers do not like authoritarian leaders. Authoritarian leaders do not consider workers' opinions, nor do they value their inputs in decision making. Discouraging group inputs stifles creativity and innovation. Workers are always demoralized as they do not feel part of the team and its decisions.
Answer:
False!
Explanation:
I just took the test right now!
Scottie Barnes has an investment that will pay him $6,400, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 percent, what is the future value of the cash flows he will receive
Answer:
Total FV= $34,947.44
Explanation:
Giving the following information:
Cash flows:
1= $6,400
2= $6,450
3= $7,225
4= $7,500
Opportunity cost= 10%
To calculate the future value of the cash flows, we need to use the following formula on each cash flow:
FV= Cf*(1+i)^n
i= opportunity cost
FV1= 6,400*1.1^4= 9,370.24
FV2= 6,450*1.1^3= 8,584.95
FV3= 7,225*1.1^2= 8,742.25
FV4= 7,500*1.1= 8,250
Total FV= $34,947.44
Assume that at the beginning of the year, Firm B divested itself of $20,000 of unproductive capital and earnings for the year fell by only $3,000. Abnormal earnings are:
Answer:
The correct response will be "$600".
Explanation:
The given problem is incomplete. Please find attachment of the complete query.
The given values are:
Normal earning,
= 11000
Rate of interest,
r = 8%
Now,
The abnormal earning will be:
= [tex]Normal \ earning-Net \ income[/tex]
= [tex]11000-((150000-20000)\times 8 \ percent)[/tex]
= [tex]11000-((130000)\times 8 \ percent)[/tex]
= [tex]600[/tex] ($)
Suppose an event has occurred that has decreases money demand. This will cause the equilibrium interest rate to g
Complete Question:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to: Multiple Choice decrease, but equilibrium quantity to remain constant. decrease, but equilibrium quantity to increase. increase, but equilibrium quantity to decrease. Increase, but equilibrium quantity to remain constant.
Answer:
Suppose an event has occurred that has decreased money demand. This will cause the equilibrium interest rate to:
decrease, but equilibrium quantity to increase.
Explanation:
Money demand equilibrium occurs at the interest rate at which the quantity of money demanded equals the quantity of money supplied. This implies that all other things unchanged, a shift in money demand will lead to a change in the equilibrium interest rate. This result will come about because with the reduced interest rate, more consumers and businesses will be angling for more loans.
The first step in the decision-making process requires you to do what?
Identify the decision that needs to be made and determine the desired goal.
Set aside some time to reflect on your career path.
Chart the decisions your competitors have made in the past three years.
Create a survey and send it to everyone in your company.
Answer:
think.....all you have to do is think XD
but in all honesty the answer is a determine your descision
What types of firms lend to businesses needing capital or long-term funds?
A) Insurance companies
B) Pension and trust services
C) Commercial finance companies
D) Pension funds
Answer:
c
Explanation:
There are some Companies that lend money and treat loans. The type of firms lend to businesses needing capital or long-term funds is Commercial finance companies.
A financial institution (FI) is known to be a type of company that is involved in the business dealings where financial and monetary transactions such as deposits, loans, investments are made.Commercial finance company is simply known to be a type of finance institution where loans are made available to manufacturers and wholesalers.
Conclusively, this Commercial finance company gives loans that can be paid back in a longer run to people who want to start up business.
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g When investment occurs in developing nations investors hope to gain significant returns on their investment and residents gain higher rates of economic growth. higher rates of economic growth are usually not achieved. significant levels of pollution usually occur. government politicians usually benefit from the illegal payments made to secure the investment.
Answer:
investors hope to gain significant returns on their investment and residents gain higher rates of economic growth.
Explanation:
The goal of most investors is to make profit. So, the expectation of investors should be to earn profit. If it is expected that the project will be unprofitable, they would not make investments.
Investments increase economic growth. For example, if and investor builds a factory in a developing country, unemployment would reduce and output would increase. This would increase economic growth
Suppose a relative has promised to give you $1,000 as a gift the day you graduate. Assuming a constant interest rate of 5%, consider the present and future values of this gift depending on whether you graduate in 1 year or in 2 years.
Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.
Present Value Value in One Year Value in Two Years
Date Received (Dollars) (Dollars) (Dollars)
Today 1,000.00 ? ?
In 1 year ? 1,000.00
In 2 years ? 1,000.00
Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years. The present value of the gift is _________ if you get engaged in two years than it is if you get engaged in one year.
Answer:
a.
Date Received Present Value Value in 1 year Value in 2 years
Today 1,000 $1,050 $1,102.50
In 1 year $952.38 $1,000
In 2 years $907.03 $1,000
Future value in 1 year if $1,000 is received today:
= 1,000 * (1 + 5%)
= $1,050
Future value in 2 years:
= 1,000 * ( 1 + 5%)²
= $1,102.5
Present value if $1,000 received in a year:
= 1,000/(1 + 5%)
= $952.38
If received in 2 years:
= 1,000 / (1 + 5%)²
= $907.03
b. The present value of the gift is smaller if you get engaged in two years than it is if you get engaged in one year.
This year, Johnson Mills has annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. The firm paid $700 in dividends, $280 in interest, and has a total tax rate of 21 percent. The firm will add $2,810 to retained earnings. What is the depreciation expense?
Answer:
$3,857
Explanation:
From the above, we do know that;
Revenue - Expenses = Net income
But
Expenses = Revenue - Cost of goods sold - Admin expenses - Depreciation expenses
Also,
Net income tax = Income before taxes × ( 1 - tax rate)
Since we do not know Net income taxes,
Net income - Dividends = Change in retain earnings
Net income = $2,810 + $700
= $3,510
Income before taxes = $3,510 / 0.79
= $4,443
$37,800 - $23,200 - $6,300 - Depreciation expenses = $4,443
Therefore,
Depreciation expenses = $3,857
How does a business survive and maintain a profit?
Answer:
Make sure you don't copy and paste. Have a good day!!!
Explanation:
1. Customers
Find and keep your own customers – you have to be able to solve their real problems & sell yourself effectively.
Too many businesses rely on ‘being in the supply chain’, have too few major customers and do not invest personal time and effort in developing and maintaining customer relations – remember, ‘people buy people’.
Check their credit rating and monitor their speed of payment.
You have not made a sale until they’ve paid the bill. Some customers have bad habits over slow payment; some are big enough to know better. Some will go under before they pay – avoid them.
2. Risks
Assess risks & their potential impact – e.g. customer or supplier closure
Develop contingency plans to mitigate risks
We live in a risky business environment. Don’t assume everything will be OK – look at the potential risks, pitfalls and liabilities for your business and at how you can reduce the biggest risks or anticipate how you will respond if the worst happens.
3. Opportunities
Look for ways to create new value – e.g. new pricing, products & offers to stimulate demand
It often takes longer and costs more than you think to innovate or do anything new.
Use the technology – social media, tablet computing and smartphones are constantly changing the ways we can do business
There are always new opportunities and growing confidence in the economy accelerates these. Many of the most attractive are not in the UK but are international.
Innovation and new approaches can open up promising opportunities but experience tells us that when doing anything new often costs more and takes longer to implement than you first expect, so be prepared to increase your investment of time and money for those new ideas. That means doing your research to find out just how attractive an opportunity it is in the first place.
4. Money in – manage cash and break even
Forecast and monitor your cash flow very closely
Aim to maintain/increase profit margins rather than just increasing sales turnover (bottom line not top line)
Monitor breakeven on the business, customers, products, staff.
Beware of ‘buying’ work at cut-throat margins. Profitable businesses can fail because they run out of money, often suffering from slow payment and lack of credit. Aim to be cash-positive and you will sleep better at night. Break-even is the point at which the business, a person or a contract starts making a profit and is always an important measure.
5. Money out – manage costs and debt
Keep your fixed costs down: avoid costs which are not essential.
Aim to grow sales on a variable cost basis – borrow, rent or lease assets but don’t buy things or hire people you don’t need.
Keep in contact with creditors & lenders to avoid nasty surprises.
Businesses can be wasteful; you don’t need to be. Invest your money only in assets and projects which will provide a strong return. The worst time to ask a lender for more money is when you really need it. Up to date management accounts are essential and you must read them to monitor the health of the business.
6. People
Optimism – positive, realistic leadership with open communications
Set & monitor clear & realistic targets – sales, costs, project completion, debt etc.
Move unproductive people & customers out of the business.
At the end of the day it’s all about how you manage relationships with people. You can tell a lot about a business from the quality of interactions between its managers, employees, customers and suppliers.
Answer:
Explanation:
No business can survive for a significant amount of time without making a profit, though measuring a company's profitability, both current and future. Without sufficient capital or the financial resources used to sustain and run a company, business failure is imminent.
If the market rate of interest is 7%, the proceeds of 6% bonds paying interest semiannually with a face value of $300,000 will be a.equal to $300,000. b.less than $300,000. c.greater than or less than $300,000, depending on the maturity date of the bonds. d.greater than $300,000.
Answer:
b. less than $300,000
Explanation:
Based on the information given since the proceeds of 6% bonds is lower than 7% market rate of interest which means that it will lead to a discount reason been that discount will often occur in a situation where the cost of bonds
is lower than the bonds face value which simply indicate that the value of the bonds will be lower than the face value of the amount of $300,000.
Answer the following question based on your understanding of interest rate risk and reinvestment risk. True or False: Assuming all else is equal, the shorter a bond’s maturity, the more its price will change in response to a given change in interest rates. False True
Answer:
False
Explanation:
In the case when the maturity of the bond is shorter the risk of the rate of interest would be less and on the other hand when the maturity of the bond is longer so the risk of the rate of the interest would be high this creates a negative impact on the bond price
So as per the given situation the given statement is false