Suppose investors decided to sell their holdings of capital stock in order to purchase outstanding bonds payable and as a result, the prices of bonds payable increased. What would be the likely impact on market interest rates? A. Market interest rates will be unaffected. B. Market interest rates will increase. C. Market interest rates will fall. D. Although interest rates will change, it is impossible to predict the direction of change. A. Market interest rates will be unaffected. B. Market interest rates will increase. C. Market interest rates will fall. D. Although interest rates will change, it is impossible to predict the direction of change. Solution The correct answer is C. Market interest rates will fall. As the investors are selling their holdings to purchase the outstanding bonds payable, there will be increase in the prices of bonds payable and as a result there will be decrease in the market interest rate. There is inverse relationship between the prices of the bonds payable and the interest rates of the market..

1. Suppose IQ scores were obtained from randomly selected sibling. For 20 such pairs of people,
the linear correlation is 0.917 and the equation of the regression line is y=6.44+0.94x, where x
represents IQ score of the younger child. Also, the 20 x values have a mean of 102.87 and the 20
y values have a mean of 103.25. What is the best predicted IQ of the older child, given that the
younger child has an IQ of 107? The best predicted IQ of the older child is(Round answer to one
decimal place)?
Solution
answer=107.02