Autarky is a state that exists where the entity can survive with no external help or the global trade.
<h3>What is trade?</h3>
Trade is the scenario when the nation engaged in acquiring or selling goods or providing services from or to the outside nations.
- Autarky is the situation of being self independent or exercising the self rule. It is being applied to the political states, systems of economy, communities or states of the nation.
- When an entity can able to exist in the market with no global interference or any kind of external help, then that situation of a firm is tend to be an Autarky.
Therefore, the definition provided in respect of the term Autarky.
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Answer:
a. $675.33
b. $1,943.03
c. $747.26
d. $4,026.05
Explanation:
a. Future Value
Pv = - $450
Pmt = $ 0
p/yr = 1
n = 6
r = 7 %
Fv = ?
With the above parameter available, the future value, Fv is $675.33
b. Future Value
Pv = - $900
Pmt = $ 0
p/yr = 1
n = 10
r = 8 %
Fv = ?
With the above parameter available, the future value, Fv is $1,943.03
c. Principal Amount
Pv = ?
Pmt = $ 0
p/yr = 1
n = 5
r = 6 %
Fv = $1,000
With the above parameter available, the future value, Pv is $747.26
d. Principal Amount
Pv = ?
Pmt = $ 600
p/yr = 1
n = 10
r = 8 %
Fv = $0
With the above parameter available, the future value, Pv is $4,026.05
Answer:
The answer is 5.71%
Explanation:
Solution
Given that
Coupon rate = 7%
Bond = $1050
Sale of the bond = $1040
n = 10 years, n = 1 year
Now we find the investor's rate of return
Thus
Coupon payment = 7%* 1000
=70
1050 = 70/(1+r) + $1,040/(1+r)
r= 5.71%
Therefore the rate of return of the investor is 5.71%
or
Rate of return = (P1-P0+ Interest ) /P0
= (1040 -1050 + 70 )/1050
= .0571 or 5.71%
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