Costs is right option. The use of outsourcing is primarily designed to reduce Costs for the business that is implementing this strategy
Outsourcing is a strategy used by businesses to reduce costs by shifting certain processes, such as manufacturing, to outside providers. Outsourcing allows businesses to focus on their core competencies, reduce overhead costs, increase efficiency, and potentially increase profitability. Additionally, it can help businesses access specialized expertise and services they may not have the resources or capabilities to provide in-house.
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The current price of Telecom RSP is $50, and you want to purchase $10,000 of its stock on a 50% margin. The broker call loan rate is 8%. Assuming Telecom pays no dividends, what will be your return on investment if Telecom goes up 10%? What is the minimum price Telecom can hit before you receive a margin call?
Your return on investment is 8%, because the loan rate is 8%.
What is investment?Investment is the process of putting money into an asset or business with the expectation of making a return, usually in the form of interest, dividends, or capital gains. Investment can also refer to the purchase of goods or services that are expected to appreciate in value.
The initial margin requirement is 50%, so you need to borrow $5,000 to purchase the $10,000 worth of stock. The interest rate on the loan is 8%, so the interest you pay on the loan is ($5,000 x 8%)/2 = $200.
If Telecom goes up 10%, the stock price increases from $50 to $55. You will make a profit of ($10,000 x 10%)-$200 = $800.
The minimum price Telecom can hit before you receive a margin call is $45. This is because the initial margin requirement is 50%, so the stock price must stay above $45 ($10,000 x 50%) for you to not receive a margin call. If it drops below $45, then you will receive a margin call.
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Which of the following measures would not help managers to control and improve operations?
a) units produced per time period
b) cost trends of a product
c) yield trends
d) commissions paid per time period
The commissions paid per time period of the following measures would not help managers to control and improve operations.
What is the cost?A cost is the amount of money that has been spent to produce something or provide a service and is thus no longer accessible for use. In business, the cost could be one of acquisition, in which case the money spent to obtain it is recognized as cost. In this situation, money is the input that is used to purchase the item.
The term refers to that commissions paid per time period pay commission monthly, quarterly, or annually. A business may want to wait until the sales contract is signed and finalized.
Therefore, Thus option (D) is correct. As commissions paid per time period may not help the managers to control or improve.
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what are the tangible and intangible qualities that a company builds into its products?
Product Features are the material and immaterial attributes that a firm incorporates into its products.
What do product features entail?Product features are specific, updated functional aspects of a product that add value for your customers. Features of a product can include attributes, elements, user interface layouts, and performance improvements.
Ownership of the final product and the product plan rests with the product managers. A significant portion of the role entails assessing, specifying, and prioritizing features. Other details that features may include include timing, status, and assignees, however you should normally be aware of each of them for any specific feature. In the process of developing new products, businesses create new features to satisfy consumer demands and improve end users' experiences. Design, quality, utility, and other characteristics of a product
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Professors Harry Markowitz and William Sharpe received their Nobel Prize in Economics for their contributions to the Multiple Choice
The Nobel Prize in Economics was awarded to professors Harry Markowitz and William Sharpe for their contributions to the ideas of portfolio-based management and the risk and return on securities.
The main contribution made by Markowitz was the creation of an operational theory for portfolio selection under uncertainty that was systematically articulated. This theory later served as the basis for additional financial economics research. In 1990, Markowitz and William F. Sharpe shared the Economics Nobel Prize. The Modigliani-Miller theorem, which he and his colleague Franco Modigliani contributed and for which he shared the 1985 Nobel Prize in Economics, was ground-breaking work in the area of finance theory.Markowitz, an American finance and economics professor who was born in Chicago, Illinois, in 1927, shared the 1990 Nobel Prize in Economics with Merton H. Miller and William F. Sharpe for their theories on determining the risk and reward of investing in stocks as well as the value of corporate bonds and stocks.
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Which one of the following is not a factor of successful product and service design?
a. be aware of what the competitors are doing
b. be aware of what customers want
c. know what government regulation are
d. use computerized design techniques
e. know what new technologies are available
d. use computerized design techniques
It's not necessary to increase employee satisfaction while redesigning a product or service.
What element of the service design is crucial?The development of a product or service with the user and target market in mind is ensured by service design. Value is delivered to the customer and the customer's customers through service design. The development of services is also examined through the lens of the consumer in service design.
What are the three essential elements of service design?I
Optimizing the interaction between the client journey and the internal business procedures that support it is the goal of service design. People, objects, and procedures are the three main pillars of service design.
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pyramids were designed to be ?
A.regional palaces
B. temples
C. government
D. tombs
Answer:
D
Explanation:
tombs
Answer:
D
Pharoahs needed to be buried under the pyramids, which would make them tombs
What might happen if an economy is unable to produce wanted goods and services people will go without them people will look elsewhere for them?
People may start looking elsewhere for them if an economy is unable to supply the desired products and services.
What may occur if a country's economy is unable to produce?People will shop elsewhere if an economy is unable to supply the desired goods and services. Customers will go where their want is satisfied if their desire is not met by the existing economy. An economy must thus create the goods and services that consumers want in order to satisfy their demand.Since society only has a certain amount of resources, it is unable to provide all the products and services that people desire.People may start looking elsewhere for them if an economy is unable to supply the desired products and services.To learn more about economy refer to:
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Answer:its B
Explanation: yes
There are an assortment of reasons why sellers might "fire" their listing agent. What are legitimate reasons for listing agents to "fire" their client?
Listing a home does not bind the sales agent to the owner. If the owner fails to act seriously and professionally in order to sell the property, the listing agent may have reasons to terminate the listing.
Sales are actions that involve selling or even the number of items sold in a specific time period. A sale also includes the provision of a service for a fee. A sale is completed by the seller, or the provider of the products or services, in response to a purchase, appropriation, demand, or direct engagement with the buyer at the point of purchase. There is a passage of title and a price settlement, in which agreement is achieved on a price for which ownership of a item will be transferred. The seller, not the purchaser, normally executes the sale, which may be completed prior to the payment requirement. When it comes to indirect connection.
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How do multinational corporations share their resources and what are their reasons for selecting that medium
multinational corporations share their resources and what are their reasons for selecting that medium 1=online database and 2=reduces costs.
MNC, or multinational corporation If a corporate entity owns and controls the production of goods or services in at least one country other than its home country, it is referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation, or a stateless corporation with nuanced but contrasting meanings. For an MNC to be distinguished from foreign portfolio investment firms, such as some international mutual funds, which invest in foreign enterprises solely to diversify financial risks, control is regarded as a crucial component. A business or organization should be considered a multinational corporation "if it receives 25% or more of its revenue from out-of-home-country operations," according to Black's Law Dictionary.
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The complete question is here:
Select the correct answer from each drop-down menu.
How do multinational corporations share their resources and what are their reasons for selecting that medium?
Multinational corporations use _1_ to share their resources with all their employees because it _2_
Explain how various economic factors contributed to the development of the global economy from 1750 to 1900.
The expansion of empires and the growth of industrial capitalism have greatly increased global exchanges.
Corporations in developed countries benefited from imperialist power over the rest of the world, especially by encouraging colonized and dependent territories to concentrate on exporting goods.
Commodities are often raw materials or agricultural products such as oil, gold, wheat and coffee, but also include capitalism processed products such as steel and textiles.
Commodities are bought and sold on commodity markets where prices are determined by supply and demand. Commodity prices tend to fluctuate due to factors such as changes in demand, weather and political events.
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The total expenses of organizing a party has a fixed expense of $250 as the rent of the place where the party is to be organized and a variable expense depending on the number of guests attending the party. For 10 guests the total expense was estimated to be $650. What is the estimated total expense for 20 guests
The total cost for a 45-person private party at the restaurant is $775. Medicare is broken into several segments based on what each part covers.
It is described as the relationship between two variables, and a straight-line result from plotting the graph of the linear equation. If there is just one variable included in the equation, it is referred to as a linear equation in one variable. In third-party-payer markets, there are differences between the parties who get the commodities and those who make the payment. Currently available platforms called third-party marketplaces allow vendors to offer their products or services for sale on a third party's website or application. The largest third-party payer, Medicare, is provided by the federal government. Medicare is broken into several segments based on what each part covers.
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The ________ states that a drawer or maker is liable on a forged or unauthorized indorsement if the person signing as or on behalf of a drawer or maker intends the named payee to have no interest in the instrument or when the person identified as the payee is a fabricated person.
The fictitious payee rule states that a drawer or maker is liable on a forged or unauthorized indorsement.
What is the rule for a fictitious payee?A commercial law principle known as the "fictitious payee rule" states that a forgery of the payee's name will be able to transfer good title to subsequent transferees if a drawer or maker issues commercial paper to a payee who the drawer or maker does not actually intend to have any interest in the instrument.
Why is a fake instrument considered a bearer instrument when it is payable to a real person?When an instrument is "payable to the order of a fictitious or non-existent person and such fact was known to the person making it so payable," it is considered payable to the bearer. "s In the early cases, rather than the agent, the instrument's drawer provided more frequently than in later cases.
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TCS the scrum team is using the KANBAN board to make work visually availible to all. What cannot be inferred from the board
Kanban is less structured than scrum, thus the scrum team using the kanban board must work through a backlog.
Explanation:.Utilizing a visualization tool that can be utilized physically or electronically, the Kanban board is used to optimize workflow. Utilizing the Kanban method enables the organization to cut expenses, and the sites quickly adapt to changes.
.Activities that are unnecessary or wasteful are not included. It utilizes the team's full ability and produces results quickly thanks to a short cycle time.
• The Kanban board's workflow is monitored using a cumulative flow diagram. Kanban is a tool for organizing work into tasks. The breakdown graphs serve as tracking tools.
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19) Which statement BEST describes how Georgia's waterway systems serve as social transportation systems
Georgia's waterway systems, which include ports and rivers, serve as social transportation systems by constructing national infrastructure that supports domestic and international trade, business, and leisure. In recognition of this critical purpose, the federal government has assumed responsibility for the creation, maintenance, and secure operation of shipping channels.
How have the nation's mountain and river systems influenced the development of the United States?
The United States' waterways and mountains, like the rest of the world, have had a significant impact on where people settled and how towns and cities interacted with one another. Because of the relative isolation and shared geography created by mountain ranges, large mountain ranges served as natural barriers between groups, resulting in the development of distinct regional shared cultures. Rivers, on the other hand, linked communities through ease of travel, trade, and shared access to water and other natural resources.
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The move by Philip Morris International (PMI), the industry-leading tobacco company, to invest billions in creating a smoke-free future is an example of
The move by Philip Morris International (PMI), the industry-leading tobacco company, to invest billions in creating a smoke-free future is an example of strategy innovation.
A business's goals for innovation, value delivery, and competitive advantage are met through using resources in accordance with an strategy innovation. An examination of a company's technology and competitive environment should be part of every strategy. its prospects and challenges from outside. The goal of innovation is to produce new value, such as fresh approaches to adjust to shifting sectors or address pressing social, health, or economic issues. A strategy is a plan that explains in great detail how you will realise your goal. An organisation must be able to use the technology in creative ways. Businesses that can't expand in this constantly shifting world risk failure. Therefore, one of the most crucial elements of a firm is its strategy.
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Andy, age 65 and Melody, age 45 are married and will file a joint return. They have unreimbursed medical expenses of $5,000 and an AGI of $50,000. What are their deductible medical expenses on Schedule A, line 4
Andy, age 65 and Melody, age 45 are married and will file a joint return. The deductible medical expenses on Schedule A, line 4 for Andy and Melody are $3,750.
This is due to the fact that they are over the age of 65 and have an AGI of $50,000.Since they are over the age of 65, they are subject to an additional threshold of 7.5% of their AGI which is $3,750 ($50,000 * 0.075). This means that their deductible medical expenses are the total medical expenses of $5,000 minus the threshold of $3,750, which equals $1,250.
Hence the correct answer is $3,750.
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What is the future value of $5,700 invested for 18 years at 9.3 percent compounded annually A) $28,251.26 B) $27,513.06 C) $27.520.22 D) $26,397.74 E) $26,887.59
The future value of $5,700 invested for 18 years at 9.3% compounded annually is $28,251.26.
Future value = P × (1 + r / m) ∧mt
Future value = $5,700 × (1.093)^18
= $28,251.26
In the case of compound interest, interest is accrued not only on the initial main investment but also on any prior interest accrued on the investment. Depending on the terms and conditions of the investment, the compounding of interest can be done across a variety of time frames, such as daily, monthly, quarterly, semi-annually, and annually. The different instances where the compound interest formula can be employed are explained by the examples of compound interest formulas that follow. As can be seen, considering the other information available, the compound interest formula is a highly helpful tool for estimating the future value of an investment, rate of investment, etc.
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Deena needs to have her mother be a co-signer on a loan for a new boat. If Deena makes one late payment, what may happen
If the borrower defaults, the co-signer may be required to pay any missing payments as well as the entire loan balance. If the borrower makes payments late, the co-credit signer's may also suffer.
Is a co-signer susceptible?If you're a co-signer, the following typical ways could have an impact on your credit score: Late or missed payments: If the primary account holder fails to make payments, the co-signers are obligated to do so. Your credit rating could be affected if the consignee fails or makes late payments.
What privileges do I have as a cosigner?You don't acquire ownership rights to the home, automobile, or even other security that now the loan is used to purchase by signing on as a co-signer. As the financial guarantor, you are responsible for seeing that the loan is repaid in the event that the primary borrower is unable to.
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Which of the following interest-free loans would result in imputed interest between the parties to the loan when the federal rate is 5%?George borrows $12,000 from his employer, Pelican Fisheries, Inc., to pay education expenses for his daughter, and George has investment income in the same year of $330.Carla lends her friend, Lois, $8,000 to buy a house generator, and Lois has investment income of $2,200 for the year.Hope borrows $120,000 from her father for an addition to her home. Hope has $4,600 in investment income in the same year.Prakash lends his wife, Smita, $50,000 to start a small business from home
Option D is the correct option.
Gift loans cover loans between friends and family, but not between couples. Additionally, loans under $10,000 will not be subject to this rule as long as they are not for assets that generate revenue.
You could decide to lend money to a relative who is beginning a company. It's a good idea to document and arrange any loans you consider giving to family members so that everyone is on the same page. You understand what is best for your family, in any case.
In most situations, a "loan" that the IRS regarded as a gift will not require you to pay taxes. Only when your lifetime donations to all recipients surpass the lifetime gift tax exception do you become liable for gift taxes. That cap is $11.7 million for tax year 2021 (rising to $12.06 million in 2022). That indicates that most individuals are secure.
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Note the correct question would be as bellow,
Which of the following interest-free loans would result in imputed interest between the parties to the loan when the federal rate is 5%?
A)George borrows $12,000 from his employer, Pelican Fisheries, Inc., to pay education expenses for his daughter, and George has investment income in the same year of $330.
B)Carla lends her friend, Lois, $8,000 to buy a house generator, and Lois has investment income of $2,200 for the year.Hope borrows $120,000 from her father for an addition to her home.
C)Hope has $4,600 in investment income in the same year.
D)Prakash lends his wife, Smita, $50,000 to start a small business from home
At a student government fundraiser, a notebook costs $7 and a t-shirt costs $12. if the total received for 60 items was $540, how many notebooks were sold?
a. 24
b. 30
c. 36
d. 40
The price of a notebook is $7, while the price of a t-shirt is $12, during a student government fundraiser. If 60 products were sold for a total of $540, 36 notebooks were sold.
Explain about the Sales?A sale is a transaction in which commodities or services are exchanged for cash along with additional considerations. In other words, a sale is any action that involves giving the buyer ownership of a product in exchange for cash.
Sales refer to any transactions where money or value is exchanged for the right to own a good or access to a service, as utilised in regular company operations. In the context of accounting, sales refer to the revenue a business generates from the sale of goods or services (net sales).
Your sales team can complete a sales cycle by adhering to a series of critical steps known as a sales process.
Let x represent the quantity of sold notebooks and y represent the quantity of sold t-shirts. The following equations are then present:
x + y = 60 I ( i )
7x + 12y = 540 (ii)
Using the elimination procedure, we can find the values of x and y.
In order to remove x, we can multiply the first equation, x+ y =60, by -7and then add it to the second equation:
-7x - 7y = - 420
7x + 12y = 540
——————————-
0x +5y = 120
Next, multiply both sides by 6 to obtain y:
y = 120/ 5
y = 24
In order to obtain x, we can now enter y = 10 into the first equation:
x +24 =60
x = 60- 24
x = 36
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how should the entries to a schedule of accounts payable be ordered
a. by date received
b. alphabetically by vendor name
c. by amount due from most to least
d. by date due
The entries in a schedule of accounts payable would be ordered alphabetically by vendors name.
What is the use of a schedule of accounts payable?A schedule of accounts payable is a list of all the vendors in the ledger of accounts payable to whom the business is currently indebted, together with the balances of their current accounts. In other words, the accounts payable schedule is a list of everyone to whom the company owes money in the accounts payable systems in alphabetical order.
There are two key benefits to using the accounts payable schedule. This schedule, first and foremost, enables managers as well as the accounts payable division to keep track of and arrange the vendor accounts that need to be paid. For instance, the majority of manufacturers and retailers purchase inventory and products from other companies.
Cash payments for these transactions are uncommon. Instead, the buying business merely places the acquisition on credit and pays the vendor within 30 days well after purchase. This technology accelerates corporate operations and makes it simpler for enterprises to purchase things.
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Answer: d. by date due
Explanation: I just took the test.
Which of the following statements is true of the factors that affect an advertising budget?
A. Brands in less-differentiated or commodity-like product classes require very less advertising to establish a unique image
B. New products typically merit large advertising budgets to build awareness and to gain consumer trial
C. In a market with few competitors and moderate advertising spending, a brand ust advertise more heavily to be heard
D. Established brands usually are supported with high advertising budgets, measured as a ratio to sales
New merchandise typically benefit large advertising budgets to construct cognizance and to reap purchaser trial.
how does advertising work in an economy?Modern client economies are pushed by way of the demand stirred via advertising for products. The demand contributes to monetary increase and prosperity.
What elements ought to be considered whilst putting the advertising price range Mcq?Product life cycle and market share.
Product type and advertising agency.
Market share and buying power.
Share charge and organisation image.
Which of the elements affects advertising budget?It relies upon on the target audience, target market, and company's marketing goals. Online media, for example, is cheaper than television advertising.
Their range is tremendously the same.
However, tv marketing may also be greater fantastic for some household products than for others.
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True or false: In corporate communications, the principal business ethic today is brevity. True false question. True False
In corporate communications, the principal business ethic today is brevity. - False
The management and coordination of all internal and external communications with the goal of fostering a positive perception among the company's key stakeholders constitutes corporate communication. Brevity is frequently praised in corporate communications for its capacity to effectively and concisely deliver information. It is not, however, always the fundamental business ethic.
Transparency, honesty, and clear and accurate communication are other crucial principles in business interactions. Additionally, being able to customize messages for various audiences and present information in an understandable way are frequently necessary for efficient corporate communication. Therefore, in corporate communications, a balance between brevity and completeness is usually valued.
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When a market is in equilibrium, Group of answer choices producers earn profits excess demand is less than excess supply the maximum possible price is achieved the minimum possible price is achieved there is no incentive for consumers or producers to change their current behavior
When a market is at equilibrium, neither consumers nor producers have any reason to modify their existing behavior. Hence, the correct answer is there is no incentive for consumers or producers to change their current behavior.
What exactly is an equilibrium market?In the absence of external forces, economic equilibrium is a situation in which economic elements such as supply and demand are balanced and the values of economic variables do not fluctuate.
Market equilibrium is a circumstance in this scenario in which a market price is formed via competition such that the number of goods or services sought by buyers matches the number of goods or services provided by sellers. This price is sometimes referred to as the competitive price or market clearing price, and it is unlikely to change unless demand or supply changes, at which point the amount is referred to as the "competitive quantity" or market clearing quantity.
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Resurfacing a particular section of highway would result in cost of maintenance savings of $500 per year for the first five years and $1,000 per year for the next five years. If maintenance costs are the only consideration, the maximum amount to spend now on the project at 6% interest is __________. $5,395 $5,254 $5,453 $5,085
An initiative of the United Nations Economic and Social Council, the Asian Highway Network is often referred to as the Great Asian Highway.
To simplify gradient-based training of very deep networks, a network architecture known as a highway network is developed. They enable unrestricted information flow across several layers on "information highways." The design is determined by the use of gating units, which can be taught to manage the information flow through a network. In summary, a good road network makes it possible for people to travel more quickly and effectively by improving accessibility to areas and bringing people closer together. The Great Asian Highway, commonly known as The Asian Highway Network, is a program of the UN. The United Nations Economic and Social Commission for Asia and the Pacific, countries in Asia, and governments in Europe launched the Asian Transportation Network.
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The risks of a focused strategy based on either low-cost or differentiation do not include which of the following? O The risk that technological change will rapidly accelerate, resulting in the creation of so many new cost drivers and value drivers that firms employing focused strategies lack the resources and capabilities to compete effectively with firms employing the other three generic competitive strategies O The potential for segment growth to slow to such a small rate that a focuser's prospects for future sales and profit gains become unacceptably dim O The chance that competitors outside the niche will find effective ways to match the focused firm's capabilities in serving the target niche O The potential for the segment to become so attractive that it is soon inundated with competitors, intensifying rivalry and splintering segment profits O The potential for the preferences and needs of niche members to shift over time towards the same product attributes and capabilities desired by buyers in the mainstream portion of the market
The risk that technological development may accelerate quickly, leading to the production of so many new cost drivers and value drivers that enterprises using focused strategies lack the resources, is not included in the hazards of a focused strategy based on low cost or distinctiveness.
What is a focused strategy?
A focused strategy is a business strategy that involves concentrating resources on a narrow segment of the market in order to gain a competitive advantage. This strategy involves concentrating on one particular product or service, or a small number of products or services, to gain a greater understanding of customer needs and preferences in that area. A company using a focused strategy will focus on a specific set of customers, and will tailor their products or services to meet the needs of that particular market segment. This strategy can be useful when trying to differentiate yourself from competitors, as well as reduce costs by narrowing the scope of operations and targeting a particular market segment.
So, The correct option is a.
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Correct Question: The risks of a focused strategy based on either low-cost or differentiation do not include which of the following?
a. The risk that technological change will rapidly accelerate, resulting in the creation of so many new cost drivers and value drivers that firms employing focused strategies lack the resources and capabilities to compete effectively with firms employing the other three generic competitive strategies
b. The potential for segment growth to slow to such a small rate that a focuser's prospects for future sales and profit gains become unacceptably dim
c. The chance that competitors outside the niche will find effective ways to match the focused firm's capabilities in serving the target niche
d. The potential for the segment to become so attractive that it is soon inundated with competitors, intensifying rivalry and splintering segment profits
e. The potential for the preferences and needs of niche members to shift over time towards the same product attributes and capabilities desired by buyers in the mainstream portion of the market.
When President Obama tried to influence the economy by cutting taxes and increasing government spending, he was applying ___ .
President Obama was implementing monetary policy when he tried to affect the economy by reducing taxes and government spending government expenditure.
How does monetary policy work?The Federal Fed's actions and utterances to advance healthy economic growth, stable prices, as well as moderate long-term interest rates—the three economic objectives that the Congress has directed the Federal Reserve to pursue—combine to form monetary policy within the United States.
What is an example of monetary policy?Implementing monetary policies The Fed will add money to the reserves as banks are required to maintain with it if, for instance, it purchases or borrows Treasury notes from commercial banks. In turn, the money supply increases.
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If an advertiser doesn't want to add remarketing tags to a website, why would Customer Match be a good fit for them? 9680179
If an advertiser doesn't want to add remarketing tags to a website, Customer Match would be a good fit for them from your ad accounts and campaigns.
Remarketing is defined as to engaging audiences who have already interacted with your brand, to encourage them to take a desired action that may interest them, such as conversion. Like, products to their shopping cart.
The match of customer feedback is the best fit by the using data from your advertisement accounts. It saves the amount of money in the new ads and marketing strategy due to the customer match it helps to find the problem.
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URGENT!!! PLEASE HELP Match the steps with description. In order from 1-9
- Finalize recruitment
- Develop position description
- Select candidate
- Conduct interviews
- Assemble selection committee
- Identify vacancy and evaluate need
- Develop recruitment plan
- Review applicants and develop short list
- Post position and implement recruitment plan
In order:
Identify vacancy and evaluate need
Develop position description
Develop recruitment plan
Post position and implement recruitment plan
Review applicants and develop short list
Assemble selection committee
Conduct interviews
Select candidate
Finalize recruitment
A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 12% annually (with semi-annual compounding) how much would you pay today for a zero-coupon bond with a face value of $1,600 that matures in 11 years
The portion of a bond's face value that is paid in interest each year is referred to as its coupon rate. Therefore, a bond with a zero coupon rate is one that doesn't pay interest.
Bonds with zero coupon rates do not accrue interest throughout the course of their lifetime. Instead, buyers purchase zero-coupon bonds at a significant discount to face value, which represents the sum the buyer will get when the bond "matures" or becomes due. The bond with the highest responsiveness has a lengthy maturity (often 20 to 30 years) and bears no interest. Consequently, long-dated zero-coupon bonds react to changes in interest rates the greatest.
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