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krek1111 [17]
2 years ago
5

When comparing two investments with the same effective rate, one with a 4-year term and semi-annual compounding and one with a 2

-year term and quarterly compounding, the nominal rate of the 4-year term instrument is ____ the nominal rate of the 2-year term instrument.
A. the same as

B. higher than

C. lower than
Business
1 answer:
Delicious77 [7]2 years ago
6 0

The 4-year term instrument's nominal rate is higher than the 2-year term instrument's nominal rate.

What is nominal rate?

The increase in payment you make to the lender for using the borrowed funds is known as the nominal interest rate.

The rate of compounding is higher for 2-year investments than for 4-year investments, which are compounded semi-annually.

As a result, option (b) is correct.

Learn more about on nominal rate, here:

brainly.com/question/13324776

#SPJ1

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A cup of Starbucks coffee is just as good as a cup of Dunkin Donuts coffee for me (assuming equal sized cups.) The price of coff
Oxana [17]

Answer:

TRUE

Explanation:

It is given that both Starbucks coffee as well as Dunkin Donuts coffee are both perfect for me. They taste same and the quality of the coffee in both are same. The price of Starbucks coffee is more than the coffee in Dunkin Donuts. As a customer I would prefer the lower cost item i.e. the Dunkin Donuts coffee.

After the pandemic, the price of the Starbucks coffee have increased. But my utility of purchasing coffee from Dunkin Donuts is not changed as the price of the Dunkin Donuts coffee is still the lowest between the two. So I will continue buying coffee from Dunkin Donuts like before. Thus my utility remains unchanged.

4 0
2 years ago
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katrin2010 [14]

Answer:

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Explanation:

6 0
2 years ago
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Suppose MBI Co. is expected to pay a $0.60 dividend per share next year. Wall Street analysts project the stock will sell for $3
neonofarm [45]

Answer:

$32.60

Explanation:

Data provided in the question:

Dividend paid per share = $0.60

Market price per share = $35.75

Required returns, r = 11.5% = 0.115

Now,

Current price = [ Dividend paid per share + Market price per share ] ÷ ( 1 + r )

= [ $0.60 + $35.75 ] ÷ ( 1 + 0.115 )

= $36.35 ÷ 1.115

= $32.60

3 0
3 years ago
The fact that a bank's assets tend to be long-term while its liabilities are short-term creates: multiple choice interest-rate r
kow [346]
Do you have any choices or any info so I can help you?
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3 years ago
The use of theory and observation is more difficult in economics than in sciences such as physics due to the difficulty in a. fo
kupik [55]

Answer:

b. performing an experiment in an economic system.

Explanation:

In contrast to scientific experimentation, whereby connections and differences can be measured between two or more variables. In economics, theory and observation are more difficult than in sciences such as physics due to the difficulty in performing an experiment in an economic system, as human beings' opinions change over time, due to dynamism in human society.

Hence, in this case, the correct answer is option

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3 years ago
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