Final answer:
The question entails understanding the implications of capital losses on tax and financial decision-making, particularly concerning the potential earnings reduction in choosing entrepreneurship over corporate employment, and an assessment of how interest rate changes affect bond pricing.
Step-by-step explanation:
The subject of the question appears to be focused on a scenario involving capital losses and their impact on an individual's financial decisions. The scenario implies that Yoko has sustained capital losses of $14,000 in 2019. When answering questions like these, especially in a business or finance context, it is important to understand the tax implications and how they affect the overall financial situation.
In the context of taxation, if Yoko has capital losses of $14,000, she may be able to use these losses to offset any capital gains to reduce her taxable income. In the United States, if her capital losses exceed her capital gains, the excess can be used to offset up to $3,000 of other income. If there are still remaining losses, they can be carried forward to future tax years.
As for Eryn, it's important to note that earning $10,000 less from her own business compared to working for a corporate firm has its own implications. This difference in potential income could influence her decision to open a business, as she may have to consider both her risk tolerance and her long-term financial goals. Decisions like these often involve complex trade-offs between potential income, personal satisfaction, and the stability of employment.
Lastly, with respect to bond pricing and interest rates, the price one would expect to pay for a bond depends on whether the change in interest rates is an increase or a decrease. If interest rates rise, existing bonds with lower interest rates become less attractive, so their prices generally fall. Conversely, if interest rates fall, existing bonds with higher interest rates become more attractive, and their prices generally rise. Thus, without knowing the direction of the change in interest rates, we cannot definitively say whether you would pay more or less than $10,000 for the bond.