1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BartSMP [9]
2 years ago
12

When Treasury bills are auctioned off, if buyers are willing to pay $900 for a $1,000 treasury bill, the government is being ask

ed to pay what percent in interest, if the bills mature after a period of one year?
Business
1 answer:
andriy [413]2 years ago
4 0

The government is paying 10% in interest.

What interest on Treasury bills?

The interest on Treasury bills compares the interest earned by the investor to the face value of the T-bill, in other words, it is determined as the interest(i.e. face value-purchase price) divided by the face value.

From an investor's perspective, I mean the person  buy purchasing the T-bill, his rate of return is the interest divided by the amount invested, which is the purchase price.

Interest=face value-purchase price

face value=$1,000

purchase price=$900

interest=$1000-$900

interest=$100

government's interest rate=interest/face value

government's interest rate=$100/$1000

government's interest rate=10%

In other words, the government by a way of issuing the bills is paying interest of 10% to the lenders

Read more on bonds generally including government bond on:brainly.com/question/22013938

#SPJ1

You might be interested in
The law of demand states that, other things equal: Select one: a. price and quantity demanded are inversely related. b. consumer
Mkey [24]

The law of demand state correct option is (a) price and quantity demanded are inversely related.

What is law of demand states?

The law of demand is a fundamental principle of the economic idea of higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded.

The  rule of demand, if all other variables remain constant, the price and quantity desired of any good or service are inversely related. When the price of a product rises, the demand for that product low as well.

As result, the law of demand states as remain constant towards a price and quantity demanded are inversely related.

Learn more about law of demand states, here:

brainly.com/question/10782448

#SPJ1

7 0
2 years ago
Select the correct answers. Which strategy would be most suitable for a company at the maturity stage of its product life cycle?
Sholpan [36]

Answer:

E decrease the product price

Explanation:

Maturity stage of the product is the stage where the product has already saturated in the market and sales begin to peak and slow down. Many companies will want to maintain this stage when it peaks but when the decline starts showing up it is a great challenge for them due to competition that cuts in from other companies.  so companies at maturity stage would want to adopt  the method of decreasing the price of the product in order  to fight off competition.

3 0
3 years ago
What is the difference between a shortage and a scarcity?
Nata [24]
Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
6 0
3 years ago
You are choosing between these four investments and you want to be​ 95% certain that you do not lose more than 8.00 % on your in
Ainat [17]

Answer:

Corporate Bonds and T-Bills will have return above 8%

Explanation:

given data

investments  = 4

investment = 8 %

solution

first of all we get  95% confidence interval that is as

and here  investment returns and standard deviation are attach so

95% confidence interval = Return - 2 × SD to Return + 2 × SD    ................a

so here

we can see here as per table attach

here only Corporate Bonds and T-Bills will have return above 8%    

8 0
3 years ago
Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
Tju [1.3M]

The retailer was asking the designers to agree to <u>Exclusive distribution</u>.

<u>Explanation:</u>

Exclusive distribution is characterized as the arrangement under which a participant is a supplier and provider. It specifies that the seller can not offer their service or item to some other group. It attaches the contract that the commodity must be distributed to an exclusive seller. The retailer asks developers for exclusive supply as per the situation specified in the discussion. Retailer does not want the jewelry design to be sold to any other outlet or retailer for successful sale. Thus agreement on this matter is suggested by the retailer.

3 0
3 years ago
Other questions:
  • Economist george stigler once wrote that, according to consumer theory, “if consumers do not buy less of a commodity when their
    10·2 answers
  • ________ and their members provide value because they buy and sell securities on behalf of the companies and individuals they re
    12·1 answer
  • Lavender company is a logistics company and has recently implemented abc system. using activityminus−based ​information, it deci
    9·1 answer
  • Selene owns a craft store. Her total costs are $1.2 million per year, and her variable costs are $750,000 per year. This means t
    11·1 answer
  • List at least three tools or services that are available when you open a savings account.
    5·1 answer
  • Question 8
    13·1 answer
  • Last week pauline worked 35 hours and made $280 how much money did pauline make per hour
    8·2 answers
  • ASAP!! Discuss Maslow’s Hierarchy of Needs Theory. In your opinion, is it a good motivator for employees to
    8·1 answer
  • Form 8889, Part 1 is used to report HSA contributions made by _______________. A. Carol B. Carol’s employer C. Carol’s cousin D.
    13·1 answer
  • When firms face reduced demand for their goods and services during recessions, behavioral economics suggests that the firm shoul
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!