Answer:
It will be sold at $1,186.71
Explanation:
We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%
<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>
C $50 (1,000 x 10%/2 as there are 2 payment per year)
time 16 (8 years x 2 payment per year)
rate 0.035 (7% rate / 2 payment per year)
PV $604.7058
<u>The maturity will be calculate as the PV of a lump sum</u>
Maturity 1,000.00
time 8 years
rate 0.07
PV 582.01
<u>The market price will be the sum of both:</u>
PV cuopon $604.7058
PV maturity $582.0091
Total $1,186.7149
The answer is letter C. There is a recession. It is a temporary economic decline when trade and business activities are lessened which leads to the GDP of the country to reduce in numbers. If the decline would last for at least 6 months, this will cause a major impact on the real GDP,
Answer:
Customer satisfaction is defined as a measurement that determines how happy customers are with a company's products, services, and capabilities. Customer satisfaction information, including surveys and ratings, can help a company determine how to best improve or changes its products and services.
Answer:
47 months
Explanation:
This can be calculated using a financial calculator :
I = 18% / 12 = 1.50%
PV = -5000
PMT = 150
FV = 0
N = 47 months
Answer:
45 degree line
Explanation:
In the equilibrium in income and expenditure model, expenditure equals national income when the expenditure crosses the 45 degree line. This means that in income and expenditure being at equilibrium, it means that there is no shift, change, deviation from the outcome.
Expenditure below and above 45 degree is not in equilibrium as that means that government income is either less than or greater than the expenditure respectively.
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