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2 years ago

QUESTION 3

Business

1 answer:

viva [34]2 years ago

6 0

The values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively.

<h3>How to illustrate the information?</h3>

The price of Bond 1 = RM7,892.93, Bond is selling at a discount because the bond price is less than the Par value

Price of Bond 2 = RM10,000, Bond is selling at par, because the bond price is equal to the par value

Price of bond 3 = RM11,240.90 Bond is selling at a premium because the bond price is more than the par value

The yield to maturity (YTM) is the estimated rate of return. The yield to maturity assumes that the buyer of the bond will hold the bond until its maturity date, and will then reinvest each interest payment at the same interest rate. Therefore, the yield to maturity includes the coupon rate that's within its calculation. The yield to maturity is also known as the redemption yield.

The YTM will be:

= [1800 + (18000 - 21800)/10] / [(18000 + 21800)/2]

= (1800 - 380)/19900

= 1420/19900

= 7.14%

Therefore the values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively and the YTM is 7.14%

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we will now sow how these Transactions affect the gross domestic product

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When Dmitri (assuming he is in the United States) Purchases a 50 cases of beer abroad, Imports increase by $2000 ($40 x 50 cases)

Imports have a negative impact on the Gross domestic product, Therefore the Gross domestic product will decrease by $2000

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2.US Company sells 200 Transistors to a Spanish company at $15 per case

Exports increase Gross domestic product. When a US Company sells 200 transistors to a Spanish Company at a price of $15 per transistor, Exports will increase by $3000. When export increase Gross domestic product will also increase by -$3000 ceteris par

+$3000 export = + 3000 Gross Domestic Product.

3. Jake US Citizen pays $1500 for a laptop he orders from microell (a US company)

This transaction will increase Consumer's domestic consumption which is represent by a Variable denoted by C in the Consumption equation. When Jake pays $1500, Consumption increases by $1500 which also increases Gross domestic Product by $1500 ceteris pa

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3 years ago

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insens350 [35]

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3 years ago

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Wewaii [24]

Answer:

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