you own a 5.5%, semiannual coupon bond that matures in 8 years. the par value is $1,000 and the current yield to maturity is 6.4%. what will the percentage change in the price of your bond be if the yield to maturity suddenly increases by 50 basis points?

Answers

Answer 1

The price of a bond will decrease by -3.10%, in accordance with the supplied statement, if the yield until maturity abruptly rises over 50 basis points.

Is six months half a year?

Half yearly is once every two years (or, technically, once every half a year). Semiannual and semiyearly are synonymous terms. Biannual & biyearly can be used interchangeably with semiannual to indicate only once an a year (every other year).

Briefing:

Step (i). Calculation of the current Bond Price:

Price of Bond = -place value (rate, nper, pmt, face value)

                       = $ 944.33

where,

Rate = 6.40%*6/12 = 0.032

nper = 8*12/6 = 16

pmt 1000*5.5%*6/12 = $ 27.50

fv =  $ 1,000.00  

Step (ii). Calculation of revised price:

Price of Bond = -place value (rate, nper, pmt, face value)

                       = $ 944.33

Rate = 6.90%*6/12 = 0.0345

nper = 8*12/6 = 16

pmt 1000*5.5%*6/12 = $ 27.50

fv =  $ 1,000.00

Step (iii). Calculation of percentage change in price of bond:

Percentage change in price of bond = (New Price -Old price)/Old Price

                                                             = (915.02-944.33)/944.33    

                               = -3.10%

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The complete question is-

You own a 5.5%, semiannual coupon bond that matures in 8 years. the par value is $1,000 and the current yield to maturity is 6.4%. What will the percentage change in the price of your bond be if the yield to maturity suddenly increases by 50 basis points?

(a). -3.30%

(b). -3.05%

(c). -3.25%

(d). -3.10%

(e). -3.45%


Related Questions

A surplus store gives a scratch‑off ticket to 2000 customers as they leave with their groceries. Can we expect these customers' average winnings to be close to the average winnings for the entire population of the scratch‑off ticket holders?

Answers

It is difficult to determine whether the average winnings of the 2000 customers from the surplus store would be close to the average winnings of the entire population of scratch-off ticket holders without additional information.

If the scratch-off tickets were randomly distributed among the population of ticket holders, then the sample of 2000 customers from the surplus store would represent a random sample of the population, and the average winnings of the sample could be expected to be close to the average winnings of the population.

However, if the surplus store gave out the scratch-off tickets differently than other stores, or if the customers who received the tickets from the surplus store had different characteristics than the overall population of ticket holders (such as being more likely to shop at surplus stores or being from a specific demographic), then the average winnings of the sample may not be representative of the overall population of ticket holders.

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In her job as a pharmacy technician, Imani measures precise doses of medication for patients. What type of skill is this?
A. technical
B. soft
C. collaborative
D. academic

Answers

Based on the fact that Imani needs to precisely measure doses of medication for patients, this type of skill is a A. Technical skill.

What is a technical skill?

A technical skill refers to one that a person gets from having specialized knowledge in several types of specialized tasks and projects.

The skill to be able to measure precise doses of medication that Imani has is a specialized knowledge that helps her in the pharmaceutical industry which makes it a technical skill.

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critically discuss how career and study choices are influenced by the following socio-economic factor: availability of finances/affordability​

Answers

Answer:

availability of financial/affordability

Explanation:

it's enables you to make more money for the growth of the community so we study it that way

When we discuss the Evaluate phase in ACE, which question do you ask to evaluate effectiveness of your instructional visuals?
A) Answer 1: Do cues in the visual help perception of selection, organization, and integration?
B) Answer 2: Is the visual learner-friendly?
C) Answer 3: Have you weeded out the extraneous data?
Answer 4: All of the Above

Answers

The Evaluate phase in ACE as the all of the above question as the relevant to the asked the effectiveness of your instructional visuals. Thus, option (d) is correct.

What is visuals?

The term visuals refer to represent the data, charts, drawings, paintings, design and the other things as included. The visuals are the concluded, the details and the easily to find out.

The evaluation of the ACE as the instrumental visuals are the first question is the selection, organization, and integration of the relevant and the visual learner-friendly and the quickly, extraneous data. As the all of the above, the question to the included.

Therefore, option (d) is correct.

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What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.

Answers

Answer:

A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOU

richard, an employee in an investment firm, was dissatisfied with the way his superiors handled business dealings. for that reason, he quit his job and started his own business so that he is able to make all management decisions without interference from anyone. which advantage of entrepreneurship is highlighted in the given scenario?

Answers

The advantage of entrepreneurship highlighted in the scenario is autonomy.

Entrepreneurship refers to the process of creating and running a new business venture in order to make a profit. Autonomy refers to the ability of an entrepreneur to make independent decisions without interference from others.In the given scenario, Richard was dissatisfied with the way his superiors handled business dealings. By starting his own business, he is able to make all management decisions without interference from anyone. This highlights the advantage of autonomy, which is an important aspect of entrepreneurship. Entrepreneurs have the freedom to pursue their vision and make decisions independently. This can lead to greater job satisfaction and a sense of personal fulfillment. Additionally, it can allow entrepreneurs to be more innovative and take risks, which can lead to greater success and profitability in the long run.

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Which function of financial statements is the most important for entrepreneurs?

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Income Statements, Balance Sheet, Statements of Owner's Equity, and Cash Flow Statements are the financial statements that serve entrepreneurs the most.

Income statement: An income statement is a financial statement that details a company's revenues and outlays for a given time period. An entrepreneur is aware of the gross profit, operating net income, and tax costs. An entrepreneur can also get an estimate of the earnings per share if it's a corporation.

Financial statement that displays the input and outflow of cash is known as a cash flow statement.

The balance sheet is a financial statement that lists all of an organization's assets, liabilities, and owner capital. Current assets, non-current assets, current liabilities, long-term obligations, and owner's equity are all listed on the balance sheet. While the balance sheet is generated for a certain date, the income statement is prepared for an accounting period.

The disclosure of owners' equity is required regardless of whether the company is publicly or privately held. It displays the starting balance, retained earnings, and dividends that the business has paid out.

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ISPs can investigate computer abuse committed by their customers. True or False.

Answers

True. Internet Service Providers (ISPs) have the ability to investigate computer abuse committed by their customers. ISPs have access to network traffic data and other information that can help identify the source of the abuse.

ISPs can also terminate the service of customers who violate their terms of service, including those who engage in computer abuse. However, ISPs must follow appropriate legal procedures and respect the privacy of their customers when conducting investigations. Internet Service Providers (ISPs) are responsible for providing customers with access to the internet. As part of their service, ISPs have access to network traffic data and other information that can help identify the source of computer abuse, such as spamming, hacking, and other forms of cybercrime. ISPs can also monitor and filter traffic to prevent malicious activities and protect their networks and customers from harm.

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In at least 150 words, examine the elements that might lead to a worker receiving a higher salary. Be sure to provide details and examples from your lesson. Provide specific detail and in depth discussion of at least two of the element areas requiring higher pay.

Answers

Answer:

As salaries are paid to workers by virtue of the work they perform, a factor that can be decisive for a salary increase is none other than a greater or better performance of the tasks that the worker performs.

On the other hand, wages can also rise if the country's minimum wage is raised, or if there is a situation of inflation that renders workers' wages useless over time.

And also, it may happen that the company that pays the worker's salary is in an exceptional situation that implies a salary improvement as a way of rewarding the performance of its workers.

I have to do question A and C for TODAY

someone help me urgent please !!!!

I have to do question A and C for TODAYsomeone help me urgent please !!!!

Answers

(A) (1) The Four enterprising characteristics/skills displayed by Emer:

InnovationRisk-takingVisionaryEntrepreneurial thinking

(ii) Two methods of encouraging intrapreneurship within the business:

Employee empowerment: Allowing employees to have a say in the decision-making process, delegating tasks and responsibilities, and providing them with the necessary resources to implement their ideas can encourage intrapreneurship.Recognition and reward: Recognizing and rewarding employees for their contributions to the business can encourage them to be more innovative and to take initiative in finding new opportunities for the business.

(B) Obligations of Emer as business owner to the various stakeholders in the enterprise:

Customers: Emer has an obligation to provide a quality product and service to her customers. She is also responsible for ensuring that the restaurant is safe and hygienic for her customers.Employees: Emer is responsible for providing her employees with good rates of pay and conditions of work. She also has an obligation to provide her employees with training and development opportunities.Suppliers: Emer has an obligation to source produce from reputable suppliers and to pay her bills in a timely manner.Community: Emer has an obligation to be a responsible member of the community in which her business operates. This includes being a good neighbor and being environmentally friendly.Shareholders: Emer has an obligation to maximize shareholder value and to report financial performance honestly.

(C) Evaluation of John Doyle's management skills:

Leadership: John is a great team leader and team builder. He leads by example and is able to delegate work effectively to his employees.Problem-solving: John is able to effectively handle any problems that arise with either staff or customers. He is able to sort out issues quietly and efficiently.Communication: John is able to communicate effectively with his staff and customers. He encourages the employees, through fortnightly meetings, to suggest improvements for the business.Motivation: John is able to motivate his staff and build a loyal team. Many staff members have been promoted to positions of responsibility in the business.

What are the  characteristics about?

Innovation: Emer is constantly trying to improve the restaurant's image, profitability, and range of services that it offers. She and John actively encourage the restaurant's employees to suggest improvements for the business and many ideas have been introduced, such as extending the opening hours to include breakfast and catering for outside parties and special events through the online business.

Risk-taking: Emer invested her savings and took out a long-term loan to purchase a restaurant on the south side of Dublin. She was willing to take the risk of starting her own business and has successfully built a profitable enterprise.

Visionary: Emer recognizes the importance of having a loyal customer base for the long-term success of the business. She is constantly striving to improve the restaurant's image, profitability and the range of services that it offers.

Entrepreneurial thinking: Emer is constantly looking for new opportunities and ways to improve her business. She sees the value of her employees' ideas and actively encourages them to suggest improvements for the business.

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PLEASE HELP!!!!!! I DON'T KNOW THIS AND IT'S FOR MY FINALS!!!!!!!!!!!
Which term BEST describes the blinking line in a word processing document that marks the spot where text appears as it is typed?

flash mark

mouse indicator

launch location

insertion point

Answers

Answer:

The insertion point—also called a cursor—is the blinking line in your document that indicates where text is inserted when you type

evaluate the process used to determine credit scores do you think its fair why or why not
how do the five C's fit to determine of a credit score

Answers

Answer:

The five Cs of credit are character, capacity, capital, collateral, and conditions. ... as the Fair Isaac Corporation), a leading credit evaluation firm, uses the information ... good credit score and credit reports play in securing a loan, it's worth considering

Explanation:

Hope this helps. Also can u give me brainliest?

You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e.. your total investment is $150,000). The portfolio beta is equal to 0.9. You have decided to sell one of your stocks which has a beta equal to 0.6 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 1.0. What will be the beta of the new portfolio? Show your answer to 2 decimal places. Your Answer:
_____

Answers

To calculate the beta of the new portfolio, we can use the formula for the weighted average of betas:

New Portfolio Beta = (Current Portfolio Beta * Current Portfolio Value - Sold Stock Beta * Sold Stock Value + Purchased Stock Beta * Purchased Stock Value) / New Portfolio Value

Given:

Current Portfolio Beta = 0.9

Current Portfolio Value = $150,000

Sold Stock Beta = 0.6

Sold Stock Value = $10,000

Purchased Stock Beta = 1.0

Purchased Stock Value = $10,000

New Portfolio Value = Current Portfolio Value - Sold Stock Value + Purchased Stock Value

New Portfolio Value = $150,000 - $10,000 + $10,000

New Portfolio Value = $150,000

Now we can substitute the values into the formula:

New Portfolio Beta = (0.9 * $150,000 - 0.6 * $10,000 + 1.0 * $10,000) / $150,000

Calculating the expression:

New Portfolio Beta = (135,000 - 6,000 + 10,000) / 150,000

New Portfolio Beta = 139,000 / 150,000

New Portfolio Beta = 0.9267

Rounded to 2 decimal places, the beta of the new portfolio is 0.93.

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Management at work you are the proud owner of a small vintage clothing store. your store, fantastic 40s, specializes in clothing from the 1940s. you have four great employees, rebecca, rachel, roberto, and rafael. at first, business was good, but, recently, you have noticed that sales are slipping. puzzled, you turn to your management textbook for some ideas on how to turn things around.

Answers

Answer:

You measure sales over time and realize that the months of July, August, and September are particularly slow. As a result, you ask two of your sales clerks if they would be willing to work part-time during those months. Management Science.

Management science refers solving problems and making decisions in a company in order to move it forward. By preferring solutions to the problem of slow sales over some months, you have engaged in management science.

You make sure that when you hire new people, you get input from each of the existing team members. if they're happy with the new hire, they're more likely to make that person part of the team, and the team will sell more. Humanistic Management Theory.

With Humanistic Management, the needs, wants and thoughts of employees are taken into account when making decisions because employees are not viewed as simple assets to the company but as humans who are complex. By finding out what your employees think of a new hire you are engaging in the Humanistic theory.

You notice that when customers have too many choices, they are less likely to make a decision about what to buy, so you tell all of your employees to bring out only three things at one time. In addition, you start to pay your employees a commission for every item they sell. Classical Management theory.

Classical management is based on certain premises such as the needs of employees being either physical or economic as well as profit maximization. By offering commissions as incentives you are appealing to the economic need of your employees. By engaging in practices aimed at getting people to buy more, you are engaging in profit maximization.

A customer survey shows that the men who come into the store would prefer to be left alone while they shop, but the women who come into the store want to be asked if they need assistance. you tell your employees to leave men alone and ask women if they want help. Contingency Theory.

Contingent Theory shows that for each situation in a company, it is best to manage it based on the internal and external factors affecting it. In this case men don't need help but women prefer it. Offer help to women but not to men. You are therefore basing actions on the factors affecting this situation.

Management at work you are the proud owner of a small vintage clothing store. your store, fantastic 40s,

.....................................hi

.....................................hi

Answers

Answer:

Hi!! I hope you are great. Thanks for the pts...

Which occurrence is an emerging trend in International agricultural marketing? A the percentage of agricultural trade is decreasing В. the percentage of agricultural trade is increasing C.agricultural markets around the world are shrinking D. developing nations have moved from net importers to net exporters E. developed nations have stopped trading in agriculture​

Answers

Answer:

answer is b

Explanation:

Answer:

the answer is b

Explanation:

i got it right on edmentum

fill the blank _____ are facts that lend believability to claims of value and benefit.

Answers

The term that fills the blank to the sentence are facts that lend believability to claims of value and benefit" is "evidence."Explanation: Evidence is the collected body of data that backs up a claim. Evidence is used to support or refute arguments, theories,

proposals, and other kinds of information, usually in academic fields. It is produced by researchers, scholars, and students through experiments, surveys, observation, and other methods. Evidence helps to make ideas more persuasive, as it provides concrete support for the claims being made.A piece of evidence can be anything from statistics to a personal story that helps to support a point being made.

In order for evidence to be convincing, it must be accurate, reliable, and relevant to the topic being discussed. In academic writing, evidence is used to support claims made in research papers, essays, and other scholarly works.Explanation: Evidence is the collected body of data that backs up a claim. Evidence is used to support or refute arguments, theories,

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Please help with all 3 bullet points
You have been invited to speak to a group of Managers at Paychex about increasing the business’s commitment to improved employee health benefits by increasing the opportunity to work remotely.
How will you appeal to their pathos?
How will you appeal to their ethos?
How will you appeal to their logos?

Answers

To appeal to the managers' pathos, I would emphasize the positive impact of remote work on employees' well-being, work-life balance and overall happiness.

How can remote work benefit employees' well-being and happiness?

As managers, we must recognize the profound influence of employee well-being on their productivity and loyalty. By increasing the opportunity of work remotely, we offer employees a better work-life balance and flexibility.

This lead to reduced stress levels, increased job satisfaction and improved mental health. Remote work allows employees to save commuting time, spend more quality time with their families and achieve a greater sense of control over their lives.

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three months ago, you purchased a stock for $69.95. the stock is currently priced at $75.89. what is the ear on your investment?

Answers

The EAR on your investment in the stock is 9.13%.

The Effective Annual Rate (EAR) is the annualized rate of return that takes into account the compounding effect of the investment. To calculate the EAR on your investment in the stock, you need to consider the time period of the investment and the frequency of compounding.

Assuming the investment period is three months and the stock has continuous compounding, the EAR can be calculated using the following formula:

EAR = e^(r) - 1

Where r is the nominal annual interest rate. In this case, the nominal annual interest rate can be calculated using the following formula:

r = ln(1 + (R / n)) * n

Where R is the total return on investment, n is the number of compounding periods per year, and ln is the natural logarithm function.

Assuming continuous compounding (n = infinity), the nominal annual interest rate can be calculated as:

r = ln(1 + (8.52% / infinity)) * infinity = 8.52%

Therefore, the EAR on your investment in the stock is:

EAR = e^(8.52%) - 1 = 9.13%

This means that if you had invested $69.95 in the stock for three months with continuous compounding, you would have earned an effective annual return of 9.13%.

It is important to note that the actual return may differ depending on the investment period, compounding frequency, and other factors such as taxes and fees.

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Natural resources occur in the environment.

False

True


Example of services are ________.

Example of goods are _____________.

A renewable resource cannot be exhausted.

True

False​​

Answers

Answer:

true they occur in the environment

we have business service (business transport service)

social service (food service )

personal service

mention the consumer goods (clothing and food)

true

Tell me ten different things a person would need a credit score for? WILL MARK BRAINLIEST DUE TODAY PLEASE HELP 50 POINTS

Answers

Buying a home, renting a car, credit card, bills, pulling out a loan, Renting a home , buying a car

Can an RN delegate to an LPN to perform suctioning?

Answers

Yes, an RN can delegate to an LPN to perform suctioning as long as the LPN is competent and trained in the procedure.

Suctioning is a common nursing intervention used to remove secretions, blood, or vomitus from the airways of patients who have difficulty breathing or are unable to clear their own secretions. It is a procedure that requires specific training and competency validation before delegation to an LPN.

The RN must assess the patient's condition and determine if suctioning is necessary. The RN must also ensure that the LPN is competent and knowledgeable in performing the procedure, and that they understand the potential risks and complications associated with suctioning. The RN must provide clear instructions and supervision during the delegation process, and they must be available to intervene if any complications arise.

It is important to note that the scope of practice for an LPN varies by state and facility, and it is the responsibility of the RN to ensure that any delegation is within the LPN's scope of practice. Proper delegation of suctioning can help promote efficient and safe patient care.

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Select the correct answer. Under which market structure does the action of one company have a spillover effect on other companies’ decisions?

A. oligopoly
B. perfect competition
C. monopoly
D. monopolistic competition

Answers

Answer:

A. oligopoly

Explanation:

a state of limited competition, in which a market is shared by a small number of producers or sellers.

Under oligopoly, the action of one company has a spillover effect on other companies’ decisions. Thus, option A is the correct option.

What is a company?

A company can be defined as an institution who makes a product or service and sells it or endorse it in the market to earn revenue.

When there is any change or shift in the market with respect to any sort of commodity than that effect goes on to another product which can be considered as a substitutional product is called as oligopoly.

For example, in the case of a cold drink if one cold drinks prices increases or the demand decreases then people start to prefer to another call ring that can be considered as it substitute product this system can be referred to as an oligopoly. Therefore, option A is the correct option.

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Which figure (amount) should be larger?
A. Expenses
B. income
C. Extras
D. Needs

Answers

ANSWER:

Income

WHY:

The expenses and extras and needs should all add up to the income and the income should be over these expenses


MARK ME BRAINLIEST PLEASE

the _____ is perceived as a consumer advocate during the advertising planning process.

Answers

The Federal Trade Commission (FTC) is perceived as a consumer advocate during the advertising planning process.

The Federal Trade Commission (FTC) is an independent agency of the US government established in 1914 by the Federal Trade Commission Act. Its principal goal is to maintain fair business practices by preventing anticompetitive, fraudulent, and deceptive practices. It also works to ensure consumer protection by prohibiting abusive and misleading practices by companies.

The FTC monitors advertising to ensure that it is truthful, unambiguous, and non-deceptive. It ensures that adverts are compliant with the provisions of the Federal Trade Commission Act and other consumer protection laws enforced by the Commission, such as the Children's Online Privacy Protection Act, the Telemarketing Sales Rule, and the Fair Credit Reporting Act.

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Shirley took out a loan from the bank today for x. She plans to repay this loan by making payments of $440. 00 per month for a certain amount of time. If the interest rate on the loan is 0. 84 percent per month, she makes her first $440. 00 payment later today, and she makes her final monthly payment of $440. 00 in 5 months, then what is x, the amount of the loan? an amount less than $2,154. 00 or an anmount greater than $2,667. 00 an amount equal to or greater than $2,154. 00 but less than $2,363. 00 an amount equal to or greater than $2,363. 00 but less than $2,574. 00 an amount equal to or greater than $2,574. 00 but less than $2,612. 00 an amount equal to or greater than $2,612. 00 but less than $2,667. 0

Answers

To solve this problem, we can use the formula for the present value of an annuity, PV = PMT *\([1 - (1 + r)^(-n)] / r\) where PV is the present value, PMT is the monthly payment.

r is the interest rate per month, and n is the number of months. Substituting the given values, we get:  Therefore, the amount of the loan is $2,200. Checking the given options, we can see that the answer is in the range of "an amount equal to or greater than $2,154.00 but less than $2,363.00", which is the third option. In summary, Shirley took out a loan of $2,200, and she plans to repay it over five months by making monthly  payments of $440.00 at an interest rate of 0.84% per month.

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what information do the people of east and west egg know and not know about gatsby?

Answers

The East Egg is the location where people who were born rich live, while the West Egg is the location where people who have recently become rich live in the book "The Great Gatsby." The East Egg stands in for the Buchanans, who inherited their wealth.

The West Egg for Gatsby, who has new money, and The Valley of Ashes for the plight of the underprivileged, such as George Gatsby. Within the upper class, socioeconomic distinctions are divided into the West Egg and the East Egg. The east egg represents old money and people whose wealth has been accumulated over many generations.

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One way to demonstrate to a potential robber that dollar general employees care about their store is to:______.

Answers

One way to demonstrate to a potential robber that Dollar General employees care about their store is to d) arrive earlier at work by 10 minutes​.

By arriving ten minutes earlier you can show the robber that you care about the store and you can arrive even at an unexpected time. This will prevent him from stealing money from the store.

Coming a little earlier to the store will demonstrate the robber that you take the safety and security of your customers, employees, and store very seriously. Hence, he will be afraid to steal from your store. Hence. option d is correct.

To show your commitment to this, you should arrive at work 10 minutes earlier to ensure everything is secure before customers arrive.

Although a part of your question is missing, you might be referring to this question:

One way to demonstrate to a potential robber that dollar general employees care about their store is to:______.

a) take a break on time

b) wear a proper uniform

c) clean the Dollar store

d) arrive earlier at work by 10 minutes​

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If a firm wanted to reduce the annual eoq cost as a percentage of the annual purchase cost by 50 percent, how would the demand rate have to change?

Answers

A firm wanted to reduce the annual EOQ cost as a percentage of the annual purchase cost by 50 percent, the demand rate have to change in Quadruple

Answer is Quadruple

Economic Order Quantity (EOQ), additionally called monetary purchase quantity, is the order quantity that minimizes the overall keeping prices and ordering charges in stock management. it's miles one of the oldest classical production scheduling fashions.

What's EOQ and its system?

Also called 'premier lot size,' the economic order quantity, or EOQ, is a calculation designed to locate the premiere order quantity for organizations to limit logistics charges, warehousing area, stockouts, and overstock prices. The components is: EOQ = square root of: [2(setup costs)(demand rate)] / conserving costs.

What is supposed through EOQ?

EOQ is a metric that represents the best order size to reduce charges for The commercial enterprise. monetary order quantity is a useful formulation for organizations of all sizes and types that order and preserve stock.

How is total value of EOQ calculated?

As a method: TC = laptop + OC + HC, wherein TC is the overall cost; pc is purchase fee; OC is Ordering value; and HC is holding price.

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3. Nat wants the benefits of investing but is very afraid of losing money. She is also
uncomfortable about not being able to access her money for longer periods of time. Which
bonds may be right for her?

Answers

Nat wants the benefits of investing but is very afraid of losing money. The bonds that may be right for her are

Short-term bondsTreasury bondsMunicipal bonds

What are Treasury bonds?

Generally, It sounds like Nat may be interested in investing in bonds that have a lower level of risk and that provide more frequent opportunities for her to access her money. There are a few types of bonds that may fit these criteria:

Short-term bonds: These bonds have maturities of one year or less, which means they will mature and pay back the principal relatively quickly. This can provide Nat with more frequent access to her money. However, short-term bonds tend to have lower yields compared to longer-term bonds, so they may not provide as much income.

Treasury bonds: Treasury bonds are issued by the U.S. government and are considered to be some of the safest bonds available. They have a reputation for being very stable, so Nat may feel more comfortable investing in them. Treasury bonds can have maturities of up to 30 years, but they can also be purchased in shorter terms.

Municipal bonds: Municipal bonds are issued by local governments and other public entities and are used to fund public projects such as schools, hospitals, and infrastructure. They tend to have lower default rates than corporate bonds and can be a good option for investors who are looking for a relatively safe investment. Municipal bonds are also tax-exempt, which can make them an attractive option for investors in higher tax brackets.

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