Answer:
a. 1.40%
b. 8.25%
Explanation:
a. Calculation to determine the inflation premium
Using this formula
Expected IP = i - RIR
Let plug in the formula
Expected IP = 2.15% - 0.75%
Expected IP= 1.40%
Therefore the inflation premium is 1.40%
b. Calculation to determine the fair interest rate on Moore Corporation 30-year bond
Using this formula
Fair interest rate=Default risk premium +Liquidity risk premium+Maturity risk premium +T-bills are currently earning
Let Plug in the formula
Fair interest rate=2.05%+ 1.40%+ 2.65% + 2.15%
Fair interest rate= 8.25%
Therefore the fair interest rate on Moore Corporation 30-year bond is 8.25%
Definitely, the correct answer on the question represented above is B.Decreasing taxes and increasing spendingon federal programs. <span>Taxes are needed to help the government pay for important common things, for example - social programs, common goods. And if we limit taxes in order to increase the avings, it will lead to deficit. </span>
No significant interest equity investment
<h3><u>
Explanation:</u></h3>
A technique used in accounting by a firm for the purpose of recording the profits that are obtained from its investments made on other company refers to an equity method. This investment is an equity investment. The profits that are obtained for the investments made by a firm is reported by the company to the firm that made the investment.
In the scenario given, Intervale Railway y is considering investing in Pale Co. stock for three months which is only 5% of the voting stock of Pale Co. For considering it to be a significant investor, more than 20% and less than 50% of the voting stock must be held by the firm. The firm is holding 5% of the voting stock and hence the investment is considered to be No significant interest equity investment.
Bonds issued in the names and addresses of their holders are called: Registered bonds.
<h3>What is Registered bonds?</h3>
Registered bonds are be defined as the type of bonds in which a a person owning a bond information or details are registered or recorded with the party that issued it.
In registered bonds the registered holder must tend to notify or inform the issuer of the bond whenever their is change in ownership.
Therefore Bonds issued in the names and addresses of their holders are called: Registered bonds.
Learn more about Registered bonds here:brainly.com/question/11882834
<u>Answer:</u>
<em>True
</em>
<em></em>
<u>Explanation:</u>
Macroeconomics is a part of financial aspects that reviews how a general economy—the market frameworks that work on a vast scale acts. Macroeconomics manages the exhibition, structure, and conduct of the whole economy, rather than microeconomics, which is progressively centered on the decisions made by singular entertainers in the marketplace.
Macroeconomists create models clarifying connections between these components. Such macroeconomic models and the gauges they produce are utilized by government elements to help in the development and assessment of financial, money related, and monetary approaches; by organizations to set methodology in household and worldwide markets.
