Given the numerous varieties of unemployment and the fact that some are inevitable or even required for a healthy labor market, full employment is not the same as zero unemployment.
The nonaccelerating inflation rate of unemployment (NAIRU), the absence of cyclical unemployment, and GDP at potential are the three conditions for full employment, according to the BLS.
When part-time workers cannot find occupations that match their skill level, there may be underemployment or unemployment in an economy with full employment. This type of unemployment is considered structural rather than cyclical. Because some people may still be unemployed due to skill mismatches, full employment does not equate to zero unemployment.
Read more about Full employment at
https://brainly.com/question/13830837
#SPJ4
when posting is complete, the post. ref. column in the general journal is completely filled in with account numbers. t or f
This correct statement is : When posting is complete, the post. ref. column in the general journal is completely filled in with account numbers.
This is TRUE.
A journal is a scholarly booklet containing articles written through researchers, professors and different specialists. Journals focus on a selected area or field of observe. unlike newspapers and magazines, journals are meant for an educational or technical target audience, not preferred readers.
A journal is a detailed document of all of the transactions done by means of a enterprise. Reconciling money owed and shifting information to different accounting statistics is finished the use of the information recorded in a magazine.
Journal makes positive that all entries are recorded no matter the size of the entity. The accounting magazine statistics all transactions in a chronological order. As a result, gaining access to records approximately a certain transaction on a selected date becomes clean.
Learn more journal here : https://brainly.com/question/28390337
#SPJ4
company x has monthly fixed costs of $50,000 and a unit variable cost of $50. how many units do they have to sell at $100 to break even?
5,000 units do they have to sell at $100 to break even.
What is the cost?A cost is the sum of money used to produce something or render a service, which is now unavailable for use. In a business setting, the cost can be one of acquisition, in which case the cost is the money expended to acquire it. In this case, the input utilized to purchase the item is money.
The formula for Variable Costs. Multiply the cost of producing one unit of your product by the total number of items you have produced to determine variable costs. This formula appears as follows: Cost per unit times the total number of units equals total variable costs.
The cost of each unit of goods that a firm produces is referred to as variable cost per unit. Variable costs alter as changes take place in the company's level of production or activity. Changes in the industry have an impact on the unit variable cost; as more units of a good are produced, additional costs are incurred.
Therefore, Thus, option (A) is correct.
Learn more about cost here:
https://brainly.com/question/15135554
#SPJ1
An operations manager must determine the sequence materials will take through the production process. this activity is known as?
The activity of routing requires an operations manager to determine the order in which materials will move through the production process.
What in operation management is routing?Planning and controlling production begins with routing. The process of determining the work's path (route) and order of operations is known as routing. Preparing fixes ahead of time: The product's quantity and quality. The individuals, equipment, supplies, etc. to utilize.
What is manufacturing by routing?The route that must be followed at each stage of the manufacturing process when transforming components and raw materials into a final product is referred to as routing manufacturing, or production routings. The required production flow is depicted by routings.
To learn more about routing here
https://brainly.com/question/18850324
#SPJ1
in a typical acute-care setting, the explanation of benefits, medicare summary notice, and remittance advice documents (provided by the payer) are monitored in which revenue cycle area?
The Medicare summary notice, remittance advice, and explanation of benefits papers are tracked in the revenue cycle area prior to claims submission in a typical acute-care context.
Initiated in 1965 by the Social Security Administration (SSA), Medicare is a government-run national health insurance programme that is presently run by the Centers for Medicare and Medicaid Services. In addition to some younger people with disability status as assessed by the SSA, such as those with end-stage renal illness and amyotrophic lateral sclerosis, it primarily provides health insurance for Americans aged 65 and older. The 2019 Medicare Trustees Report states that over 59.9 million people received health insurance through Medicare in 2018, including over 52 million seniors and nearly 8 million younger persons. Medicare covers nearly half of the healthcare costs for those enrolled, according to annual reports from the Medicare Trustees and study by the government's MedPAC committee. enrollees nearly.
Learn more about Medicare from
brainly.com/question/1960701
#SPJ4
what is the npv of a project expected to generate $1,000 a year for 5 years assuming a discount rate of 10% and an initial outlay of $3,250?
The NPV of a project expected to generate $1,000 a year for 5 years assuming a discount rate of 10% and an initial outlay of #3,250 is $540.786
What is NPV (Net Present Value)?It is the difference between the present value of cash inflows and the present value of cash outflows over a period of time with discount rate in effect of calculating it.
Based from the question above, we need to find the NPV of a project that expected to generate $1000 / year for 5 years.
Now, let's use the Net Present Value formula
NPV = Rt / (1+i)^t
NPV = net present value
Rt = net cash flow at time t
i = discount rate = 10%
t = time of the cash flow
NPV = R1 / (1+i)^1 + R2 / (1+i)^2 + R3 / (1+i)^3 + R4 / (1+i)^4 + Rt / (1+i)^5
= -3,250 + (1,000 / (1+0.1)^1) + (1,000 / (1+0.1)^2) + (1,000 / (1+0.1)^3) + (1,000 / (1+0.1)^4) + (1,000 / (1+0.1)^5
= -3,250 + 909.091 + 826.446 + 751.315 + 683.013 + 620.921
= $540.786
Therefore, the net present value of the project is $540.786.
Learn more about net present value brainly.com/question/20344604
#SPJ4
which qualitative risk analysis technique involves using various sources of risks or project areas impacted to determine the areas of the project most exposed to the effects of uncertainty?
The correct to the given question of Qualitative risk analysis technique is Delphi Technique.
It is impractical for project managers to manage every risk that a project can encounter. The resources used to reduce a risk frequently outweigh the risk itself. As a result, one of the main objectives of qualitative risk analysis is to rank hazards according to their likelihood and impact. This enables project managers to concentrate on coming up with solutions for the biggest risks. Experts in a field reply to numerous rounds of surveys using a process called the Delphi Technique. After each round, the responses are compiled and distributed to the group. This technique can be used in risk management to both identify risks and then assess their likelihood and impact. The experts are tasked with forming a judgment on the risk's likelihood of happening as well as the implications of it. The experts compile and evaluate these comments until an agreement is reached.
To learn more about experts click here
brainly.com/question/14376452
#SPJ4
given the following framework for the statement of cash flows, what is missing? cash flows from operating activities $xxx cash flows from investing activities xxx change in cash $xxx beginning cash balance xxx ending cash balance $xxx a.beginning retained earnings balance b.free cash flow c.total stockholders' equity
The following framework for the statement of cash flows, is missing Cash flows from financing activities.
What three operations are included in the cash flow statement?Operating, investment, and finance activities are the three subcategories that make up the cash flow statement.
Which of the following won't appear on the cash flows from financing activities?Depreciation expense is an operating expense and, if the indirect method is employed, an adjustment to income, hence it is not included in the financing activities portion of the cash flow statement.
Which of the following would be included in the statement of cash flows' section under "cash flows from operating activities"?The cash that comes into and leaves a company is included in the cash flow from operations, which is the first portion of the cash flow statement. Operating cash flows also include changes in working capital, adjustments to net income, and net income itself.
To Know more about Cash flows
https://brainly.com/question/28238360
#SPJ4
What's another word for a private club?
strip club is another word for a private club. An association of persons who share a common interest or objective is called a club.
An association of persons who share a common interest or objective is called a club. For example, a service club engages in volunteer or charitable work. There are clubs for social activities, political groups, religious clubs, and clubs for hobbies and sports, among others.
Clubs have been documented historically in all ancient states that have been thoroughly studied. There was a need for people with a shared interest to be able to connect even when they had no blood links after people began residing in greater groups. Clubs and organisations of the kind have been around for a long time, as shown by the Ancient Greek clubs and associations (collegia) in Ancient Rome.
Learn more about club here
https://brainly.com/question/9213202
#SPJ4
each time a payment is made on an installment note, the portion of the next payment associated with notes payable increases. this statement is
True. On an installment note, a percentage of each payment is deducted from the principle sum that must be paid.
The amount of interest expenditure lowers with each subsequent payment because the principle balance drops but the interest rate stays the same.
The percentage of the payment related to notes payable must grow since the total cash payment stays the same while the component related to interest expenditure goes down. On an installment note, a percentage of each payment is deducted from the principle sum that must be paid.
With each successive payment, the amount of interest expenditure lowers (rather than grows) because the principle balance drops while the interest rate stays the same.
Learn more about notes payable here:
https://brainly.com/question/25148915
#SPJ4
A snack food company decreases the size of their single-serving size tortilla chips bag to 3. 0 ounces, which is 10% less than the original size.
A snack food company decreases 10% of the size of tortilla chips bag to 3.0 ounces. The original size of the bag is 3.33 ounces.
Percentage is a fraction of a hundred. For example 20% is equal to fraction 20/100.
The formula for calculating the percentage is given by:
percentage = value / total value x 100%
In the given problem, let:
p = original size of the bag
The snack size is decreased to 3.ounces, which is 10% less than the original size. It means, the current size = 100% - 10% = 90% of its original size.
90% x p = 3
p = 3/90%
p = 3/0.9 = 3.33
Hence, the original size of the bag is 3.33 ounces.
Your question is incomplete, but most probably your question was:
A snack food company decreases the size of their single-serving size tortilla chips bag to 3.0 ounces, which is 10% less than the original size.
What is the original size of the bag?
Learn more about percentage here:
https://brainly.com/question/21512139
#SPJ4
nova, incorporated is considering declaring a $100,000 cash dividend. nova has a cash balance of $20,000 and retained earnings balance of $100,000. nova should:
Nova, incorporated is considering declaring a $100,000 cash dividend. nova has a cash balance of $20,000 and retained earnings balance of $100,000. Nova should not declare a cash dividend because it does not have enough cash.
Managers employ a set of important measures to track performance in every expanding business. Profitability, cash management, and other operations are evaluated using metrics. The calculation of retained earnings, which is based on the following formula, is one crucial measure to keep an eye on:
Beginning Retained Earnings = Beginning Retained Earnings + Net Income (or Net Loss) - Cash Dividends
Retained Earnings at the End
Businesses that consistently create retained earnings are worth more and have more financial flexibility.
Equity on the balance sheet is the difference between assets and liabilities, and the retained earnings balance is an equity account. Net income (profit) increases a retained earnings balance, and cash dividends paid to shareholders decreases the balance.
To know more about retained earnings:
https://brainly.com/question/14529006
#SPJ4
in lpc leadership theory, the leader's relationship with group members, the structure of the task, and the leader's position power together determine the most effective way to lead. group of answer choices true false
The statement given above regarding the leadership theory is completely true.
In the leadership theory of IPC, it has been proposed that an ideal leader should be able to develop such relations with the other group members so that the structure of the task, as well as the positional power of the leader is together able to determine the process of leading the entire group as a whole in the most effective way possible. It also brings a higher degree of efficiency within the group.
Therefore, the statement given above holds completely true.
Learn more about leadership theory here:
https://brainly.com/question/29452698
#SPJ4
which of the following are the sources of technological change we discussed in class? i) additional amounts of existing capital ii) better machinery and equipment iii) increases in human capital iv) better means of organizing and managing production
Better machinery and equipment are the sources of technological change. So, the correct answer is option ii.
The most significant element affecting the rate of economic growth is technological change. It performs a vital role than the capital formation. The ability to maintain raising output per person is a result of technical advancement. As a result, it is the main driver of economic expansion.
Technological advancement or change is the finding of new and more effective production techniques. Natural resource supplies can sometimes grow as a result of technology advancements. However, technical advancements more generally lead to an increase in the productivity of labour, capital, and other resources. Total factor productivity is the output of all factors' combined inputs.
To know more about Technological change visit:
https://brainly.com/question/14337814
#SPJ4
if losses exceed income since the company began operations, retained earnings will have a credit balance.a) True
b) False
Option b. False is the correct answer to the question. If losses exceed income since the company began, Retained Earnings will have a debit balance.
The amount of profit a business keeps after paying all of its direct and indirect expenses, income taxes, and dividends to shareholders is known as retained profits. This is the percentage of the company's equity that may be utilized, for example, to fund the purchase of new machinery, research and development, and marketing. Retained earnings are referred to as accumulated profits when they are accumulated over time. Hence, when the losses exceed the income level then the retained earnings will have a debit balance.
Learn more about retained earnings:
https://brainly.com/question/14529006
#SPJ4
True or false? The professor uses the phrases "The Law of Ideas" and "Intellectual Property Law" interchangeably.
False: The professor uses the terms "Intellectual Property Law" and "The Law of Ideas" interchangeably.
The establishment and protection of intellectual creations like designs, music, artwork, and inventions are the subject of intellectual property (IP) law.
What are the 4 kinds of protected innovation?The company's patents, trademarks, copyrights, and trade secrets are valuable assets that must be safeguarded by knowing how they function and are made.
What are the seven rights in intellectual property?Copyright, trademarks, patents, geographical indications, plant varieties, industrial designs, and semiconductor integrated circuit layout designs are the seven types of intellectual property rights in India.
To learn more about Intellectual Property Law here
https://brainly.com/question/12374755
#SPJ4
According to recent data, obese patients are less likely than nonobese patients to obtain preventive health services and exams, including cancer screenings, pelvic exams, and mammograms. They are more likely to cancel appointments, delay appointments, and delay preventive care service.
a) Both the first and second statements are false.
b) Both the first and second statements are true.
c) The first statement is true, and the second statement is false
d) The first statement is false, and the second statement is true.
The statements that are true based on the obese pations are statements 1 and 2. Henvce Both the first and second statements are true.. Option 2
What is meant by obesity?The delay in receiving medical care has a positive relationship with BMI. 12.7% of participants said they have postponed or cancelled a doctor's appointment because of weight issues.
An important component of treating obesity is increasing physical activity or exercise: Exercise. For those who are obese, 150 minutes a week of moderate-intensity exercise is required to either maintain current weight loss or to stop further weight gain.
Weight gain that is abnormal or excessive and poses a risk to health is what is meant by the terms "overweight" and "obesity." Overweight is defined as a body mass index (BMI) of 25, and obesity as a BMI of greater than 30. Obesity in the United States has dramatically increased in prevalence over the past few decades, leading to a huge public health concern.
Read more on obesity here: https://brainly.com/question/1646944
#SPJ1
a country is said to have this type of exchange rate when its government keeps the exchange rate against other currencies at or near a particular target. floating fixed stable flat a country is said to have this type of exchange rate when the rate is allowed to move with the market. fixed floating variable free market foreign exchange controls are policies that limit the rights of governments to fix exchange rates. of governments to set interest rates. of central banks to hold foreign currency. of individuals to buy foreign currency. governments can buy and sell currency internationally through exchange market intervention. open market initiatives. capital market intervention. foreign exchange controls. when a government buys and sells currency internationally, it directly impacts the quantity of what within its country? foreign-owned assets domestic savings foreign exchange reserves foreign investment
A country is said to have fixed type of exchange rate when its government keeps the exchange rate against other currencies at or near a particular target
A country is said to have floating exchange rate when the rate is allowed to move with the market.
What is the fixed exchange rate?When a currency's value is fixed or pegged by a monetary authority against the value of another currency, a basket of other currencies, or another measure of worth, such as gold, the exchange rate is known as being fixed or pegged.
What is the floating exchange rate?A floating exchange rate is one that is based on free market supply and demand. Since governments and central banks often endeavor to make their currency price beneficial for international trade, a floating exchange rate does not indicate that countries do not try to intervene and control the price of their currency.
Read more on exchange rate here:https://brainly.com/question/2202418
#SPJ1
why can a monopoly make a positive economic profit even in the long run? a monopoly can make positive economic profit in the long run because _____.
The monopoly can make positive economic profit in the long run because barriers to entry prevent other firms from entering the market and sharing the profit.
What is monopoly?
In economics, monopoly is defined as a single firm in the market that produces and sells a unique or new product to their target customers and the market firm enjoys the power of price developer and market controller.
Here we need to find the missing term in the given statement "monopoly can make positive economic profit in the long run because __________".
As per the definition of monopoly, we know that the existence of high barriers to entry prevents firms from entering the market even in the long‐run.
So, it is possible for the monopolist to avoid competition and continue making positive economic profits in the long‐run.
To know more about Monopoly here.
https://brainly.com/question/29765560
#SPJ4
The commute times for the workers in a city are normally distributed with an unknown population mean and standard deviation. If a random sample of 27 workers is taken and results in a sample mean of 22 minutes and sample deviation of 3 minutes, find a 95% confidence interval estimate for the population mean using the student's t-distribution.
If the commute items for the workers in a city are normally distributed with an unknown population mean and standard deviation. Using the student's t distribution 95% confidence interval for the sample mean is 20.8129 and 23.1870
To calculate a 95% confidence interval.
Given Data
size n = 27 , sample mean = 22 , standard deviation = 3.
Here the 95% CI is given as,
× ± t*s/[tex]\sqrt{n}[/tex]
t{(n-1),\[tex]\alpha[/tex]}=t_{(27-1),0.05} = 2.056
(22± 2.056*3/\sqrt{27})
(22- 2.056*3/√27, 22+ 2.056*3/\sqrt{27})
( 22 - 1.1870 , 22 + 1.1870)
( 20.8129 , 23.187)
Thus , 95% confidence interval for sample mean is ( 20.8129 , 23.1870).
To learn more about confidence interval
https://brainly.com/question/24131141
#SPJ4
which of the following is not one of the four stages of a business cycle? select one. question 4 options: a. through b. expansion. contraction d. stagnation
Stagnation is not one of the four stages of a business cycle. Option D is the right solution that we have to the question here.
What is meant by the business cycle?When the Gross Domestic Product (GDP) fluctuates around its long-term natural growth rate, it is said to be in a business cycle. It shows how an economy changes through time, expanding and contracting in terms of economic activity.
An extended era of economic growth is always followed by an extended period of economic contraction. A business cycle includes four distinct phases that can be identified during its lifetime: expansion, peak, contraction, and trough.
The repeated economic shifts that occur in a nation over time are referred to as business cycles. It can be recognized by changes in the GDP and other macroeconomic indicators. The business cycle has four distinct phases: expansion, peak, contraction, and trough.
Read more on the business cycle here: https://brainly.com/question/26086110
#SPJ1
almond corporation acquires 10,000 shares of its own $1 par value common stock at $10 per share. the journal entry for this transaction includes a:
Almond corporation acquires 10,000 shares of its own $1 par value common stock at $10 per share. the journal entry for this transaction includes a debit to Treasury Stock for $100,000.
Explain about journal entry.
Journal entries are important records of the money that comes in and goes out of your company. All of these transactions are entered into the general journal, the corporate book.
The first phase in the accounting cycle is journal entries. You should be aware that all journal entries in accounting use the double-accounting approach.
This implies that there is always a debit entry and a credit entry for every recorded transaction since two accounts should be impacted.
You should comprehend the significance of journal entries for a firm before delving into the finer details of double-entry bookkeeping and creating them.
To study more about journal entry.
https://brainly.com/question/28390337
#SPJ4
o'malley company sells 100,000 units for $13 a unit. fixed costs are $350,000 and net income is $250,000. what should be reported as variable expenses in the cvp income statement? group of answer choices $600,000. $700,000. $950,000. $1,050,000.
The reported variable expenses in the CVP income statement is $ 700000
Variable costs = sales - fixed costs - net income
= 13*100000 - 350000 - 250000
= $700000
CVP is decided via the interplay of cardiac feature and venous return, which is itself determined through the blood quantity and the compliance traits of the venous gadget. for this reason, an expanded CVP can reflect a boom in blood volume in addition to an impairment in cardiac function.
Important venous strain (CVP), an estimate of proper atrial stress, has been used to assess cardiac preload and volume popularity in critically ill sufferers, help within the prognosis of right-sided coronary heart failure, and guide fluid resuscitation. it is decided by the interplay between cardiac function and venous return.
Learn more about CVP here https://brainly.com/question/23894490
#SPJ4
sanjeev has been having a difficult time using the personal selling process with a particular buyer, and he has asked his manager gillian for some ideas about how to close the sale effectively. gillian asks sanjeev a number of questions to help sort out the difficulties. what is she least likely to ask?
She is least likely to inquire, "Have you finished the follow-up to soothe the buyer's mind?"
What is personal selling process?Personal selling is a face-to-face sales method where a salesman uses their people abilities to convince a consumer to purchase a certain product. The salesperson tries to persuade the consumer that the product will only bring value by emphasizing its different qualities.
Personal selling is the practice of a salesperson meeting with a prospective customer to finalize a deal. A series sales process with generally nine phases is used by many salespeople. For all or a portion of the sales process, some sales professionals write scripts.
To know more about personal selling process, visit:
https://brainly.com/question/14207849
#SPJ1
Investments with longer payback periods are more desirable, all else being equal.
The concept mentioned is about the Payback period which is a concept of capital budgeting.
The Payback Period is a method of capital budgeting which is the time required for the return on an investment to repay the total original investment.
It is a method of evaluating the investment and can be calculated easily. The even net cash flow shows that the cash inflows are more positive than cash outflows. It ignores the time value of money.
It ignores an investment's overall profitability. The best payback period is the shortest one. Getting repaid or recovering the initial cost of a project or investment should be achieved quickly.
To know more about the Payback period,
brainly.com/question/28304736
#SPJ4
if diamond, a corporate recruiter, wants to selectively recruit passive job candidates, she should utilize the linkedin social media network. t or f
The statement if diamond, a corporate recruiter, wants to selectively recruit passive job candidates, she should utilize the LinkedIn social media network is True.
What is passive Job candidates?A passive job candidate can be defined as person which an employer wish or desire employ but in which the person is not available for the job position which an employer want to employ him/her for.
The statement is true based on the fact a recruiter that desire to recruit a passive candidate for a job position can result to making use of LinkedIn social media network as this will enables the recruiter to find the right candidate.
Therefore the correct option is TRUE.
Learn more about passive job candidate here:https://brainly.com/question/29060080
#SPJ1
tahlia is interested in exporting. she is accompanying representatives of the u.s. department of commerce to london where she will meet with qualified agents, distributors, and customers to help her make contacts and explore export opportunities in london. tahlia is participating in
She is accompanying representatives of the U.S. Department of Commerce to London the place she will meet with qualified agents, distributors, and customers
In global trade, exporting is the technique by way of which corporations from one usa sell their items and offerings to organizations or buyers in a unique country.
Why is exporting important?Exporting can be worthwhile for organizations of all sizes. On average, income grow faster, extra jobs are created, and personnel earn extra than in non-exporting firms. Competitive Advantage. The United States is acknowledged international for excessive quality, revolutionary goods and services, consumer service, and sound enterprise practices.
Learn more about Exporting here:
https://brainly.com/question/13663581#SPJ4The term ________ is best described as "a stream of equal installments made at equal time intervals."
A) time value of money
B) capital budgeting
C) annuity
D) payback period
Answer: C
Explanation:
When an amount is paid in equal cash payments at equal time intervals then it is known as annuity payments. Annuity payments are usually payment usually made for a defined number of periods. Hence, it is a correct option.
fixed costs are $900,000 and the variable costs are 75% of the unit selling price. what is the break-even point in dollars? group of answer choices $2,100,000 $2,700,000 $3,600,000 $1,200,000
The variable expenses are 75% of the selling price of the item, while the fixed costs are $900,000. $3,600,000 is the break-even mark in terms of money.
Costs fixed = $900,000
Variable expenses equal 75%, or 75/100.
Contribution Margin is calculated as Product Price - Variable Costs, or (100 - 75)/100, which equals 25%.
Break-Even Point = Fixed Costs – Contribution Margin = ($900,000/25)*100 = $3,600,000
The contribution margin is on a gross or per-unit basis. It represents the additional revenue generated for each good or unit sold following the deduction of the variable portion of the business's costs.
The breakeven point (breakeven price) for a trade or investment can be determined by comparing the market price of an asset to its starting cost. When the two prices are equal, the breakeven point is attained.
To know more about Contribution Margin, click the below link
brainly.com/question/29534784
#SPJ4
suppose the exchange rate is 90 yen per u.s. dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per u.s. dollar. if the demand for u.s. dollars , the fed ______.
Suppose the exchange rate is 90 yen per US dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per US dollar. if the demand for US dollars , the fed sells dollars to lower the exchange rate.
When rate of exchange changes, the worth of 1 currency can go up whereas the worth of the opposite currency can go down. Once the worth of a currency will increase, it's aforementioned to own appreciated. On the opposite hand, once the worth of a currency decreases, it's aforementioned to own depreciated.
When a country's rate of exchange will increase relative to a different country's, the value of its merchandise and services will increase. Ultimately, this will decrease that country's exports and increase imports.
To learn more about rate of exchange, visit here
https://brainly.com/question/28388759
#SPJ4
an investor has two bonds in their portfolio, one with 3 years until maturity and the other with 10 years until maturity. which of the following scenarios is more likely if interest rates increase by 2%? a. neither bond will decrease in price, but their yields will increase b. both bonds will decrease in price by the same proportion c. the 10-year bond will decrease more in price d. the 3-year bond will decrease more in price
Option A is correct neither bond will decrease in price, but their yields will increase
What happens to bonds when activity rates go up?A vital principle of bond investing is that market activity prices and bond expenditures generally go in opposite directions. When market interest quotes rise, prices of fixed-rate bonds fall. this phenomenon is recognized as activity rate risk.
What is interest price danger Why does a bond with a longer maturity have higher activity charge threat than a bond with a shorter maturity?Key Takeaways. When hobby rates rise, bond expenditures fall (and vice-versa), with long-maturity bonds most sensitive to charge changes. This is due to the fact longer-term bonds have a larger length than temporary bonds that are nearer to maturity and have fewer coupon repayments remaining.
Learn more about interest rate risk here:
https://brainly.com/question/13163076#SPJ4