Long-term bonds are preferable to hold if interest rates decrease because their price will rise more than the price of short-term bonds, providing a bigger return. Long-term bonds, however, are more susceptible to interest-rate risk. In addition, the longevity of the bonds, not only their term to maturity, is a major factor.
<h3>What are
short-term bonds?</h3>
Short-term bonds may offer consistent income with comparatively little risk. When compared to money markets, higher profits can be obtained. Even some bonds are tax-free.
The potential yield of a short-term bond is higher than that of money market investments. Bonds having shorter maturities are often more resistant to changes in interest rates than other types of assets. Purchasing a bond and keeping it until it matures entitles you to the stated principle and interest rates.
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Answer:
The Truth in Lending Act (TILA)
Explanation:
TILA was passed in 1968 in an attempt to protect loan consumers from unfair practices carried out by lenders. TILA requires lenders to disclose the credit terms in a simple and understandable manner so that potential consumers can compare credit terms offered by different lenders. The information disclosed must include the loan's APR, principal, finance charges, payment schedule and monthly payments.
TILA applies to most types of consumer credit, including car loans, home mortgages, credit card, home equity loans, etc.
Answer:
Dave's marginal revenue from selling milk is $ 5.
Explanation:
This problem requires us to calculate Dave's marginal revenue from selling milk. The marginal revenue is calculated by subtracting current reveue form the expected or forecasted revenue. Detail calculation is given below.
Current reveune = 4 * 5 =20 dollars -A
Expected Reveunue = 5 * 5 = 25 dollars -B
Marginal revenue = A-B = 25- 20 = $ 5
Answer:
100 labor will be hired to minimize the costs of producing 200 units of output.
Explanation:
Maximising profit
Profit (Pr) = P*Q - Cost
= P*Q - 5L - 20K
= P*4(LK)^0.5 - 4L - 20K
dPr/dL= P*2(K/L)^0.5 - 4 = 0
dPr/dK = P*2(L/K)^0.5 - 20 =0
We know equilibrium condition
MPL/MPK = w/ r
= 5/20
= 0.25
MPL = 2(K/L)^0.5 MPK = 2(L/K)^0.5
K/L = 0.25
K = 0.25L
200 = 4(0.25L^2)^0.5
=4*0.5*L
L = 100
Therefore, 100 labor will be hired to minimize the costs of producing 200 units of output.
Answer:
a. Mean arrival rate = λ = 30
Service rate = μ= 60/1.50 = 40
Average wait time = λ / 2μ(μ - λ)
Average wait time = 30 / 2*40*(40-30)
Average wait time = 0.0375
The average wait time in minutes = 0.0375 hrs * 60 minutes = 2.25 minutes
b. The average number of customers = Lq = λ² / 2μ(μ - λ)
= 30² / 2*40*(40-30)
= 1.125
= 1.13
c. μ = 60 / (1.50−0.5)
= 60
Average wait time = λ / 2μ(μ - λ)
Average wait time = 24 / 2*60*(60-24)
Average wait time = 0.0069
The average wait time in minutes = 0.0069 hrs * 60 minutes = 0.414 minutes
The average number of customers = Lq = λ² / 2μ(μ - λ)
= 24² / 2×60×(60−24)
= 0.1333
= 0.133
