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 instruments are used by scientists to measure wind speed

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

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

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

The Democratic Party consisted of _________ individuals

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Answer:

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

Explanation:

49% percent of individuals

What is a religious group

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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:

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

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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.  

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

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Answer:

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

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

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Answer:

The legislative branch is made up of the House and Senate

Congress

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.

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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 :)

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:

What is your decision? To go to college or to go to work?
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i will give brainlest if you answer all of them

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Answer:

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

Explanation:

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.

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

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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.

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

Answers

Answer:the answer is C Fish

Explanation:

Answer:

c

Explanation:

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!

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

Answers

the answer is Richmond

Answer:

Correct Answer is Richmond

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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

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!

Caleb has been regularly listening to a popular weekly podcast on political issues and current events produced
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Answers

Answer:

A sociologist would describe Ezra Klein as a:

d. opinion leader.

Explanation:

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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

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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!

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

Question 4 of 5
What is one of the major geographic features of Pacific South America?
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A. Enormous rain forests

Hope this helps ;)

Answer:

Explanation:

Deserts with a little moisture

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

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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.

list ways in which the Greek influence the romas ​

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Answer:

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

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Answers

Answer:

1. Amusement Parks

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Explanation:

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

Answers

Answer:

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Explanation:

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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.

Citing a source can help you to do what?
O use a work fairly
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Answers

Answer:

use a work fairly

Explanation:

took the quiz

Answer:

a. use a work fairly

Explanation:

got it right on edge

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.

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.

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