Answer:
the price of the zero-coupon bond is approximately GBP 4,524.21. This means that an investor would need to pay GBP 4,524.21 upfront to purchase the bond and would receive GBP 10,000 at maturity in 16 years.
Explanation:
A zero-coupon bond is a type of bond that does not pay any interest to the bondholders. Instead, it is issued at a discount from its face value and matures at a future date when the bondholder receives the full face value of the bond.
In this case, the company has issued a zero-coupon bond with a face value of GBP 10,000 and a maturity period of 16 years. The market rate for such bonds is 8%, compounded semiannually.
To calculate the price of the bond, we need to discount the future cash flow of GBP 10,000 back to the present value using the market rate of 8%. Since the interest is compounded semiannually, we need to adjust the interest rate accordingly.
The formula to calculate the present value of a future cash flow is:
PV = FV / (1 + r/n)^(n*t)
Where:
PV = Present Value
FV = Future Value
r = Interest Rate
n = Number of compounding periods per year
t = Number of years
In this case, FV is GBP 10,000, r is 8% (0.08), n is 2 (semiannual compounding), and t is 16 years.
Using the formula, we can calculate the present value as follows:
PV = 10,000 / (1 + 0.08/2)^(2*16)
PV = 10,000 / (1.04)^(32)
PV = 10,000 / 2.208
PV ≈ GBP 4,524.21
B)The scientific method can help develop accurate models even when data are unavailable.
C)The scientific method may not reveal a "true" model of the world.
D)The scientific method does not require the models to be tested with data.
Answer:
The answer is: C) The scientific method may not reveal a "true" model of the world.
Explanation:
When economists and scientists use the scientific method they are trying to develop models of the world and then test them with data. Past data is used to try to predict future economic behavior. That doesn´t mean that those models are 100% accurate and true, but rather that they might (or not) apply to specific situations.
Microeconomics relies on the use of the scientific method and econometrics, while the scientific method is not applicable in macroeconomics.
Among the options, the true statement is option C: The scientific method may not reveal a 'true' model of the world. The scientific method is meant to minimize bias and enhance result reliability, but that doesn't mean it always reveals the 'true' model of the world, as models can change with new data or perspectives.
Among the statements provided, option C) The scientific method may not reveal a "true" model of the world is true. The scientific method uses a systematic approach to answer questions and understand phenomenon. It's meant to reduce bias and increase the reliability of results, but that does not mean it always reveals an absolute or 'true' model of the world. Scientific models are inherently simplifications of the real world, and they can change as new data or perspectives come to light.
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Problem recognition stage.
This is when the consumer makes a conscious realization that they have a problem which can (hopefully) be solved by purchasing a product or service in the marketplace.
B. free trade
C. specialization
D. absolute advantage
Answer:
decrease
Explanation:
Secondary markets decrease the interest rates that organizations have to pay on issued bonds. With the presence of secondary markets, companies that issue bond can then pay lower rates of interest and still sell the entire bonds needed. What the secondary market does is that it bids up the bonds price above their face values. This therefore makes interest that will be paid a lower percentage, and thus leads to lower ROI and yield.
Answer:
The answer is d.
Explanation:
Market power is defined as the power possessed by a single individual or a company or a group of companies to have effect on the prevailing market power. Such a group has the power, which if exercised, can affect the prices and deter competition. These individuals or companies have this power over others because of the position they hold with respect to others on the basis of either their market share, market size, technical advantage or so on. Thus, option d which says the power of a single person or small group to influence market prices is the right answer.
Market power refers to the ability of a single entity or a small group to influence market prices. It typically arises when a firm is the dominant player in the market, giving it the ability to control the price of goods or services.
Market power refers to the power of a single person or small group to influence market prices (option d). It is the ability of a firm to control the price of a good or service in a market, by being the dominant player. For instance, if a single company produces a unique product that no other firms manufacture, the company can set the price as it will not face direct competition. This scenario illustrates a high degree of market power.
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