Option b. False is the correct answer. The majority of economists think that throughout time, real and nominal economic variables act differently from one another. Monetary neutrality is the idea that an increase in money supply will affect the level of prices but not the level of output.
There are two kinds of variables, according to the traditional analysis employed in business and economics. Nominal variables, which are assessed in monetary terms, make up the first group. Real variables, which are measured in physical units, make up the second category. It is known as a classical dichotomy when nominal and real variables are separated.
The variables that are assessed in monetary terms are known as nominal variables. Real variables, on the other hand, are measured in physical units. Therefore, because they are measured in monetary units like dollars, the money supply and price are nominal variables. The fact that products and services are measured in physical units, however, makes them real variables.
It is known as monetary neutrality in classical analysis when changes in the money supply have an impact on nominal variables but not real variables. A rise in the money supply, for instance, will raise prices, another nominal variable, but it won't have a long-term impact on the number of products and services the economy can generate a real variable.
Learn more about economics:
https://brainly.com/question/14787713
#SPJ4
in a(n) ______ arrangement, one partner in a jv assumes primary responsibility for running it.
Based on business management, in an assigned arrangement, one partner in a JV assumes primary responsibility for running it.
What is an Assigned Arrangement?The assigned arrangement is a business term that is used to describe the type of agreement often in Joint Ventures that is used after a contract is signed, to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract.
Generally, assigned arrangements also involved a situation whereby one partner assumes primary responsibility for the operations of the strategic alliance.
An essential part of the assigned arrangement in a Joint Venture is the following:the competency of parties to enter into a contract, legal consideration, promise and acceptance, and a lawful objectHence, in this case, it is concluded that the correct answer is the Assigned arrangement.
Learn more about the joint ventures here: https://brainly.com/question/9389546
#SPJ1
FILL IN THE BLANK. if portugal sends out 30 units of wine, it will get back ________ units of cloth.
Answer:
45
Explanation:
If Portugal sends out 30 units of wine, it will get back 45 units of cloth.
the ordinary and necessary expenditures owners expect to incur during the next 12 months that do not materially add value, but keep the property competitive in its local rental market are more commonly referred to as:
The ordinary and necessary expenditures owners expect to incur during the next 12 months that do not materially add value, but keep the property competitive in its local rental market are more commonly referred to as: Direct Market Extraction.
It is a technique which is used for determining the right capitalization rate based on similar property sales.It is usually the total annual income which is generated by the rental property after accounting for vacancy losses and other income.It is based on income over a one-year period. The direct capitalization approach is best suited for properties that consistently provide money from year to year due to this supposition.
To know more about Direct Market Extraction here
https://brainly.com/question/28285493?source=archive
#SPJ4
goofus asks gallant if gallant will sell his used ps5 game console for $720. what is the status of their negotiations?
An offer has been made, but it may be withdrawn is the status of their negotiations.
NegotiationNegotiation is a conversation between two or more people with the goal of obtaining a mutually advantageous agreement or resolving a disagreement. During a negotiation, one participant will attempt to persuade the other to accept his or her point of view. The objective is to prevent disagreements and find some sort of agreement amongst the parties. There are various situations where negotiating yields the greatest results: When there are two or more parties or organizations involved in the dispute Both sides have a significant conflict of interest. Everyone believes that the negotiations will result in a better outcome.
To know more about negotiation visit the link
https://brainly.com/question/902450
#SPJ1
Business and industry hiring is one use for personality assessments.
true
false
It is true that the business and industry hiring is one use for the personality assessments.
What is personality?A person's personality is defined as the specific patterns of behavior, intellectual processes, and emotions that are formed through time as a result of biological and environmental factors that are particular to that person. The bulk of theories focus on motivation and psychological interactions with one's environment, even though there isn't a single definition of personality that is generally recognized. However, conduct is the primary determinant of personality and is influenced by habits and learning. It tries to use the study of personality psychology to understand the patterns that underlie behavioral variances. Psychologists have utilized a variety of theories to investigate personality, including biological, cognitive, learning, trait-based, psychodynamic, and humanistic theories. Early field theorists had an impact on the wide variety of personality study techniques used today.
To learn more about motivation, visit:
https://brainly.com/question/6830385
#SPJ4
The critical path for the network activities shown below is _____ with duration ______.
A. A-C; 12
B. A-D-E; 19
C. B-E; 13
D. A-B-C-D-E; 29
E. none of the choices
The critical path for the network activities shown below is A-D-E with duration 19.
You can identify tasks required for a project's successful completion using the critical path method. The longest series of tasks that must be completed on schedule in order to conclude the entire project is known as the critical path in project management.
This establishes the quickest timeline for the project's completion.
In the question given, the activities A and B are independent, they can be started immediately. Activity C and D should be preceded by the activity A. Activity E must be preceded by activity B,C, and D.
The critical path of the project is A-D-E, for the project completion.
The time taken is 10+4+5=19.
Therefore, the correct option is B.A-D-E; 19
To learn more about critical path method refer here
https://brainly.com/question/24227953#
#SPJ4
Complete Question
The critical path for the network activities shown below is _____ with duration ______.
Activity
Duration Immediate Predecessors
A 10 ---
B 8 ---
C 2 A
D 4 A
E 5 B,C,D
A. A-C; 12
B. A-D-E; 19
C. B-E; 13
D. A-B-C-D-E; 29
E. none of the choices
which variable the nominal gdp or real gdp, is affected by changes of money supply in the long-run, and why
Nominal GDP tends to rise with the money supply, but this is not always the case. Real GDP–also referred to as "constant-price," "inflation-corrected" or "constant-dollar GDP–is an inflation-adjusted measure of a country's GDP.
Gross home product is a financial degree of the market price of all of the final goods and offerings produced and bought in a particular term through countries. due to its complex and subjective nature this degree is regularly revised before being considered a dependable indicator. Economists use many abbreviations. one of the maximum commonplace is GDP, which stands for gross domestic product. it's far often cited in newspapers, on the tv information, and in reports via governments, imperative banks, and the enterprise community. GDP = non-public intake + gross private investment + government funding + government spending + (exports – imports). GDP is generally calculated with the aid of the national statistical corporation of the us of a following the international popular.
Learn more about GDP here: https://brainly.com/question/1383956
#SPJ4
Assume that president biden develops an executive agreement with russia this month, which will reduce taxes on foreign oil imported from the country as way to promote cordial international business interests. This executive agreement is directly in conflict with a foreign tax treaty issued by congress in may of last year. Assuming the president has the power to develop this agreement what is the likely outcome?.
The President's order will be overturned because it directly conflicts with the enumerated taxing powers of Congress.
Explain what taxes are.Specify taxes. Governments levy taxes as obligatory charges on persons or goods in essentially every country on the earth. Although it can be used for other purposes, taxes are usually utilised to raise funds for government spending.
What does "tax" mean?The word's origin, taxare, is Latin and meaning "to assess." Before that, the analogous word "task," which is derived from Old French, was used in English. For a while, the words "task" and "tax" also were often used; the former involved labour and the latter, money.
To know more about tax visit :
https://brainly.com/question/20343917
#SPJ4
a sailor being evaluated in the same paygrade as his previous evaluation can only receive a progressing performance evaluation under what condition?
The correct option for this question is : a. He received a Significant Problems on the last eval.
A pay grade is a unit in frameworks of monetary reward for employment. It is generally utilized in public service, both civil and military, yet in addition for companies of the private area. Pay grades facilitate the employment interaction by providing a fixed system of compensation ranges, instead of a free negotiation. Typically, pay grades include two dimensions: a "vertical" range where each level compares to the responsibility of, and requirements required for a certain position; and a "horizontal" range within this scale to take into consideration monetary incentives rewarding the worker's quality of execution or length of service. In this manner, a representative advances within the horizontal and vertical reaches after achieving positive appraisal consistently. In many cases, evaluation is done yearly and envelops more than one technique.
Pay scales are important business planning devices for companies to make new positions when the financial plan permits, while likewise providing a norm of straightforwardness where workers know their worth and join an organization with clear compensation expectations.
to know more about monetary reward click here:
https://brainly.com/question/28072585
#SPJ4
the complete question is:
A Sailor being evaluated in the same paygrade as his previous evaluation can only receive a Progressing performance evaluation under what condition?
a. He received a Significant Problems on last eval
b. He received a Progressing on last eval
c. He received a Non-Judicial Punishment (NJP)
d. He is making progress in his rate
kayak company uses a job order costing system and allocates its overhead on the basis of direct labor costs. kayak company's production costs for the year were: direct labor, $23,000; direct materials, $43,000; and factory overhead applied $5,300. the predetermined overhead rate was: multiple choice
The predetermined overhead rate was 23.04%.
The actual overhead that was used and the actual direct labour expenditures can be used to compute the overhead application rate. The annual overhead application rate is calculated by dividing the actual amount of overhead by the actual cost of direct labor.
Typically, overhead costs cannot be assigned to a certain product directly. According to a predetermined allocation rate, it is an indirect cost that is split among various departments and added to the cost of the product or charged to the income statement.
The amount of overhead charged for the given year is $5,300. The estimated labor costs are $23,000. The result of dividing the overhead application rate ($5,300 by $23,000) is: 0.2304.
0.2304*100
23.04%
Therefore, the overhead rate is 23.04%.
To learn more about overhead rate refer here
https://brainly.com/question/29583640#
#SPJ4
The replacement of workers in assembly line production with robotic technology would be considered which type of unemployment?
The replacement of workers in assembly line production with robotic technology would be considered structural type of unemployment.
Robots replacing humans on production lines is seen to be a structural form of unemployment. Technological advancements that remove jobs or a shortage of worker skills are two factors that might contribute to structural unemployment.
A clothes manufacturing plant invests in specialist equipment to improve production assembly. This technology replaces certain assembly employees while also increasing manufacturing productivity. Many workers endure structural unemployment as a result of their lack of the requisite skills.
Unfavourable changes in the economy lead to long-term structural unemployment. Structural unemployment is a major subject in economics due to its wide-ranging effects and the challenges in resolving the problem. In turn, this can lead to a rise in the rate of natural unemployment.
know more about economy here
https://brainly.com/question/2421251#
#SPJ4
bju press if ruth contributed $10,000 toward the total group investment of $200,000 for the purchase of a seafood restaurant, what percentage of the company does she own?
The 5% of the company will Ruth still own after the investment, according to the given question.
Amount Contributed - $10,000
Total Investment - $200,000
Therefore,
% hold on the company = Amount Contributed / Total Investment *100
= $10,000 / $200,000 *100
= 5%
The 5% of the company will Ruth still own after the investment, according to the given question.
A brief outline of your business plan that piques the curiosity of potential investors should be included in your investment pitch presentation. Because your product is only one component of your business strategy, it shouldn't only be a pitch for your product.
Know more about the % calculation - https://brainly.com/question/29566392
#SPJ4
sonam is a hiring manager at a software company. which of the applicants below would sonam likely shortlist due to potential as a technology expert?
Where Sonam is a hiring manager at a software company, The applicants below what Sonam would likely shortlist due to their potential as technology expert is: the one with the most hands-on experience and who demonstrates people aptitude.
What is the rationale for the above response?Note that a vast number of tech roles no longer require a degree. The emphasis has shifted to the ability to deliver and word together in a team.
Hiring managers collaborate with recruiters and HR managers to supervise the selection and hiring of new employees. Their primary purpose is to choose and hire the individual with the finest qualities and attributes.
It is to be noted that the full options are not available hence the general answer above.
Learn more about Hiring Manager:
https://brainly.com/question/16495108
#SPJ1
the initials eft stand for a. electronic financing for teens. b. education for legal tender. c. educated financing transactions. d. electronic funds transfer.
Answer:
d
Explanation:
electronic funds transfer
the personal distribution of income in the united states shows that question content area bottom part 1 a. the richest 20 percent of individuals receive approximately 25 percent of total income. b. the richest 20 percent of individuals receive approximately 50 percent of total income. c. the poorest 20 percent of individuals receive approximately 20 percent of total income. d. income is equally distributed. e. the poorest 60 percent of individuals receive approximately 50 percent of total income.
Option b is correct about the personal distribution of income in the united states. The richest 20 percent of individuals receive approximately 50 percent of total income.
What is the economic inequality in the United States?Rising economic inequality in the United States has become a key topic and discussions about potential policy changes to help address it are likely to continue until the general election of 2020. The wealthiest 10 percent of earners possessed 68 percent of all wealth in the United States. The wealth owned by the bottom 50% of earnings, in contrast, was only 3.2% of the total.
What is the distribution of wealth?The wealth distribution in a society is a comparison of the wealth of different individuals or groups. One facet of economic disparity or heterogeneity is demonstrated by this. In contrast to the income distribution, the wealth distribution examines the economic ownership of the assets in a society rather than the members' current levels of income. The distribution of wealth around the world is far less equitable than that of income, according to the International Association for Research in Income and Wealth.
To know more about Distribution of income visit: brainly.com/question/14259864
#SPJ4
when a customer pays in advance for a product or service, the advance payment received by the company is recorded as:
When a customer pays in advance for a product or service, the advance payment received by the company is recorded as a debit to an asset and a credit to liability account.
ABOUT ADVANCE PAYMENTAdvance payment that is, in general: payment of an obligation, principal and interest before the due date; accounting: current expenses for a benefit to be received in the future; these expenses are recorded as prepaid expenses on various assets which will then be amortized when the benefits are enjoyed, for example prepaid rental fees; banking : payment of part or all of loan by the debtor before the due date;
Early repayment may be influenced by economic factors, such as a sharp decrease in interest rates which allows the debtor to refinance at lower interest rates, as well as changes in the number of members of the debtor's family, relocation of business premises, sale of the debtor's house, or death of the debtor; commercial loans and installment loans are also repaid earlier if the debtor gets a refinancing facility.
Learn more about advance payment at https://brainly.com/question/29058755.
#SPJ4
sharika completed her mba from a prestigious university and got an entry-level position with a financial firm. although she worked diligently and produced everything that was asked of her, she was not able to advance in the firm as much as male colleagues with similar credentials and job performance. it is likely that sharika encountered
As per the job performance, it is likely that Sharika encountered the glass ceiling with similar credentials and job performance.
Here we have given that Sharika completed her MBA from a prestigious university.
And we need to find what it is likely that Sharika encountered on the given situation,
While we looking into the given problem, here we have identified the following that Sharika completed her MBA from a prestigious university and got an entry-level position with a financial firm.
In in that firm, she worked diligently and produced everything that was asked of her and in one situation she was not able to advance in the firm as much as male colleagues with similar credentials and job performance.
In this state she will encountered the glass ceiling.
To know more about Credentials here.
https://brainly.com/question/14703860
#SPJ4
social media sites primarily exist for broad topics, making it difficult for marketers to appeal to smaller communities and niche markets. group of answer choices true false
Social media platforms DO NOT exist primarily for broad topics, which makes it falsely difficult for marketers to target smaller communities and particular customers.
Are the online journals where people express their ideas typically about a specific subject?Online journals called blogs allow readers to share their opinions, usually on specific subjects. On blogs, businesses can place advertisements and sway the content.
What component of social media marketing is the most crucial?One of the most crucial things you can do to continuously enhance your social media marketing plan is to track your analytics. Monitoring analytics provides you with a thorough image of the types of content and promotion tactics that are effective as well as those that are not, allowing you to make adjustments and advance.
To know more about Social media platforms visit :-
https://brainly.com/question/29459870
#SPJ4
treasury stock that had been purchased for $9,000 last month was reissued this month for $9,700. the entry to journalize the reissuance would include a credit to
The $9,000 in Treasury Stock purchased last month was reissued this month for $9,700. Credit for $700 from Paid-In Capital from Sale of Treasury Stock would be included in the entry to journalize the reissuance.
Treasury stock, a contra-equity account that lowers the overall balance of shareholders' equity, is listed inside the shareholders' equity section at the price of the shares that were repurchased.
The gain is recorded in an account called "paid-in capital from treasury stock" if the Treasury stock is sold for more than it cost to buy it. The company's retained earnings are diminished if the treasury stock is sold for less than its cost to repurchase it.
learn more about Treasury Stock here:
https://brainly.com/question/28392297
#SPJ4
how does issuing stocks in foreign markets affect firms? multiple choice causes currency problems extends the firm's investor pool and often reduces cost of capital influences local legal systems supports international debt markets
The concept given here is the Stock issue. The answer is, extends the firm's investor pool and often reduces the cost of capital.
Foreign requests are any requests outside of a company's own country. Dealing with foreign requests involves dealing with different languages, societies, laws, rules, regulations, and conditions.
Companies looking to enter a new request need to precisely probe the implicit occasion and produce a request entry strategy. The firm issues stocks in the foreign request when the whole allotment of the stock isn't possible in the domestic country.
In such a case, the remaining shares are issued in the transnational request to gain the currency of similar countries, and latterly that currency can be used to pay the tips. enterprises may issue stock in foreign requests when they're concerned that their home request may be unfit to absorb the entire issue.
To know more about the Stock issue,
brainly.com/question/29377879
#SPJ4
due to the principle of compounding interest, if you invest $1,000 today at 5% annual interest, how much would you have in 2 years?
If one invests $1,000 today at 5% annual compound interest, then he or she would have an amount of $1102.5 at the end of two years.
The computation of the compound interest received for the given information will be done by inputting the given values into the generalized formula, as below,
Compounded Annuity = Principal (1+ rate/n)^nt
Compounded Annuity = 1000(1+ 0.05/2)^2
Compounded Annuity = 1000(0.1102)
Compounded Annuity = 1102.5
Therefore, the compounded annuity after interest will be $1,102.5 at the end of two years.
Learn more about compound interest here:
https://brainly.com/question/14295570
#SPJ4
What general rule of thumb connects your car payment and your monthly savings budget?
what is the required return for a stock with a beta of 1.25 when the market return is expected to be 12% and the return on a u.s. treasury bill is 2.5%?
The required return for stock with a beta of 1.25 is 10.5%.
What is beta?The beta in finance is a measurement of how a certain asset changes (on average) when the entire stock market rises or falls. Therefore, when a modest amount of an asset is introduced, beta is a good indicator of how much risk the asset adds to the market portfolio. Thus, beta is also known as the systematic risk, market risk, non-diversifiable risk, or hedging ratio of an asset. A measure for idiosyncratic risk is not beta. According to definition, the valuation average of all market betas for all investable assets relative to the value-weighted market index is 1. Negative betas are uncommon in actual stocks . A typical stock's beta falls between 0 and 3.
Calculation of required return R = Rf+ B(Rm-Rf)
= 10.5%
To learn more about beta, visit:
https://brainly.com/question/14456979
#SPJ4
which method of job analysis was designed to permit simultaneous assessment of the job requirements and a person's ksaos?
Job components inventory is a method of job analysis was designed to permit simultaneous assessment of the job requirements and a person's ksaos.
Why is job analysis importantSeveral reasons explain why job analysis is important. First, the output becomes input for making human resource plans, including for:
Recruit and select employees Plan compensation such as salary and benefits Establish performance appraisal standards Design training programs and career development Setting up promotion and succession programs Reorganize business processesIt all requires a detailed description of all the jobs and positions in your company. It includes title, role, responsibility, authority, required skills and salary. So, by understanding the work in the company, you can develop more qualified human resources accompanied by the right policies and programs.
Take the case in recruiting. With an accurate and detailed description, you compile the requirements that must be met by the applicant, such as the required education, skills, knowledge and personal qualities. So, you can fill vacant positions with qualified candidates.
Second, you can use the results of the analysis to evaluate how relevant each job is to your company's goals and strategy. So, you can improve work processes to synergize them to make them more effective.
Third, you can map how each position can add value to the company. For example, you might pay more attention to some strategic positions and invest more in developing the qualities and skills of the position holders. On the other hand, you may need to eliminate some non-vital positions to support more efficient business processes.
Fourth, a conducive work environment with minimal conflict requires an evaluation of the results of the analysis. Conflicts at work often arise due to overlapping authority and responsibilities. So, to solve this problem, you can map and define authority and responsibility in each position. This aims to avoid gray areas or multiple roles. And, to do that, you need a job analysis.
Learn more about job analysis at https://brainly.com/question/14905921.
#SPJ4
a new firm enters a market that is initially serviced by a cournot duopoly charging a price of $15. what will the new market price be should the three firms coexist after the entry?
Assuming another firm enters a market that is at first overhauled by a Bertrand duopoly charging a cost of $15.the new cost should the three firms coincide after the section is $15.
What is a duopoly?
A duopoly can be characterized as a market where two organizations will generally overwhelm the market which suggests that these two organizations that control the market will more often than not go up against one another.
Since the new firm charges the amount of $15 it implies that the new cost be will just like the $15 that was charged.
Accordingly, the new cost is $15.
Learn more duopoly:
https://brainly.com/question/14184993
#SPJ4
Another company enters a market that was initially overhauled by Bertrand's Duopoly at a cost of $15. If the three companies match after the section, the new cost will be $15.
What is a duopoly?
A duopoly can generally be characterized as a market dominated by two organizations, suggesting that these two market-dominant organizations mostly compete with each other. .
The new company charges an amount of $15, so this means the new cost is the same as the $15 charged.
So the new cost is $15.
To learn more about duopoly here:
https://brainly.com/question/29574269
#SPJ4
who experiences the largest loss of consumer surplus when the price of the good increases from $20 to $22.
The buyer who loses the most consumer surplus when the price of the commodity rises from $20 to $22 is the one who experiences the same loss of consumer surplus as the other two customers.
A consumer surplus occurs when customers pay less for a good or service than they would be willing to. It is a way to quantify the extra value that consumers get from paying less than what they would have been willing to pay for a product.
The gap between what a customer is willing to pay and the price they actually pay for a product is referred to as the customer surplus. The price differential between the market price and the lowest price a producer is willing to take in order to create a good is known as the producer surplus.
Learn more about consumer surplus from here:
https://brainly.com/question/13573671
#SPJ4
The complete question has been attached in text form:
Who experiences the largest loss of consumer surplus when the price of the good increases from $20 to $22?
Carlos $15
Quilana $25
Wilbur $35
Ming-la $45
an investor performs an investigation and review of all types of risk while considering an acquisition of a property. a generally accepted industry term for this activity is called: ch13
An investor performs an investigation and review of all types of risk while considering an acquisition of a property. A generally accepted industry term for this activity is called Due diligence.
Due diligence is the process of conducting an investigation, audit, or research to confirm the accuracy or particulars of a topic under consideration. A study of financial papers is required as part of the due diligence process in the financial world before entering into a proposed contract with another party.
Due diligence is the methodical assessment and lowering of risk related to a company or investment decision. An individual investor may extensively research any stock using readily available public information. The legislation incorporated a legal defense: the dealers and brokers could not be held responsible for information not discovered during the investigation as long as they used "due diligence" while researching the companies whose stocks they were selling and properly communicated the results.
Learn more about Investment here:
https://brainly.com/question/27717275
#SPJ4
in modern times, have all companies completely embraced the marketing concept and become market oriented?
Yes, in modern times, have all companies completely embraced the marketing concept and become market oriented but, they’ve also moved on beyond the marketing concept.
Marketing is any activity a business does in to draw customers to its goods or services through persuasive communication. The long-term objective of marketing is to demonstrate the value of the product, strengthen brand loyalty, and ultimately increase sales. Marketing tries to deliver standalone value for prospects and consumers through content. To create, communicate, deliver, and exchange offerings that are valuable to customers, clients, partners, and society at large, marketing is the activity, collection of institutions, and procedures involved.
One of the key elements of company administration and trade. Marketers have a choice of targeting consumers or other companies with their goods. No matter to whom the marketing is directed, a number of considerations are relevant, including the marketers' chosen point of view.
the complete question is:
In modern times, have all companies completely embraced the marketing concept and become market oriented?
No
I have no idea.
Yes, but they’ve also moved on beyond the marketing concept.
Yes
learn more about Marketing here
https://brainly.com/question/13414268
#SPJ4
which power base was found overall to have no significant impact on productivity in studies of its use across companies but if used properly can significantly increase productivity
Studies of its application across firms have not found a substantial influence on productivity, but when implemented properly, a reward power base can greatly boost productivity.
The capacity to reward successful, desirable results is known as reward power. Therefore, a leader has reward authority if they have the ability to praise, provide more vacation days, or manage the bonus pool.
People like having their efforts appreciated. Employees can receive this appreciation thanks to reward power.
The capacity to reward others for adhering to your requests or instructions is known as reward power. For instance, a manager may be able to give sales staff that fulfill quotas increases, promotions, incentives, or even just plain praise. These benefits may make workers more motivated to work hard.
To learn more about reward power
https://brainly.com/question/28148311
#SPJ4
true or false: with a discount bond, the return on a bond is equal to the rate of capital gain.
False. With a discount bond, the return on a bond is equal to the coupon rate plus the rate of capital gain.
Return on a Discount BondA discount bond is a bond that is issued at a price lower than its face value. The return on a discount bond is equal to the coupon rate plus the rate of capital gain. The coupon rate is the interest rate that is paid to the bondholder, and the rate of capital gain is the difference between the purchase price of the bond and its face value.
For example, if a bond has a face value of $100 and is purchased for $90, the rate of capital gain is 10%. If the coupon rate is 5%, the total return on the bond would be 15%.Learn more about Discount bond: https://brainly.com/question/25596583
#SPJ4