Question

Data for january for bondi corporation and its two major business segments, north and south, appear below:

sales revenues, north $ 541,000
variable expenses, north $ 314,000
traceable fixed expenses, north $ 64,800
sales revenues, south $ 418,300
variable expenses, south $ 238,700
traceable fixed expenses, south $ 54,200

in addition, common fixed expenses totaled $146,900 and were allocated as follows: $76,300 to the north business segment and $70,600 to the south business segment. a properly constructed segmented income statement in a contribution format would show that the segment margin of the north business segment is:
multiple choice
a. $85,900
b. $314,000
c. $162,200
d. $150,700

Answer 1

The price of bonds generally moves inversely with changes in interest rates. If interest rates rise, one would pay less for a bond, and if rates fall, one would pay more, assuming the coupon rate is fixed.

Step-by-step explanation:

The question appears to be from a business or finance course, relating to the valuation of bonds and their sensitivity to changes in interest rates. When interest rates change, the price of existing bonds typically moves inversely to the change in rates. Thus, if interest rates increase, the price of a bond would be expected to decrease, meaning you would pay less than its face value or original price depending on the scale of the interest rate change.

Conversely, if interest rates decrease, the bond's price would likely increase, potentially costing more than the face value. Without specific data on the original coupon rate of the bond and the extent of the change in market interest rates, an exact price cannot be determined; however, the principle of inverse relationship between prices of existing bonds and interest rates provides guidance on the expected trend in bond valuation.