Answer:
2.2% change in the price of this bond if the market yield to maturity rises to 5.7 percent from the current rate of 5.5 percent.
Explanation:
Face Value = $1,000
Coupon payment = 1000 x 4.5% = $45 annually
Number of periods = n = 16 years
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Yield to maturity = 5.7%
Price of the Bond = $45 x [ ( 1 - ( 1 + 5.7% )^-16 ) / 5.7% ] + [ $1,000 / ( 1 + 5.7% )^16 ]
Price of the Bond = $876.18
Yield to maturity = 5.5%
Price of the Bond = $45 x [ ( 1 - ( 1 + 5.5% )^-16 ) / 5.5% ] + [ $1,000 / ( 1 + 5.5% )^16 ]
Price of the Bond = $895.38
Percentage Change = ( $895.38 - $876.18 ) / $876.18 = 2.2%
Answer:
Equilibrium output will rise by <u>$10,000.</u>
Explanation:
Marginal propensity to consume (MPC) shows the change in the amount consumption expenditure by consumer as a result of change in the national income.
In order to calculate the amount by which equilibrium output will rise, we need to first calculate the multiplier as follows:
Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.9) = 1 / 0.1 = 10
Since we also have:
Amount of rise in government spending = $1,000
Therefore, we have:
Effect $1,000 rise in government spending on equilibrium output = Amount of rise in government spending * Multiplier = $1,000 * 10 = $10,000
Therefore, equilibrium output will rise by <u>$10,000</u>.
<h3>Hello there!</h3>
Your question asks how much is it to open a checking account.
<h3>Answer: You usually don't pay to open a checking account, but mostly would need to put in a minimum deposit.</h3>
Most of the time, banks don't charge a customer to open up their own checking account, due to the fact that people are going to use that account to make deposits and withdrawals anyways. If banks were to charge people to open an checking account, people would not choose that bank to hold their money.
Most of the time, banks do not charge customers to open a checking account, but they require customers to put a minimum deposit in the account. The minimum deposit could be around $25 or higher. Banks do this in order to maker sure that the customer has funds in the account so they're technically using it, rather than having a customer open up a checking account and not use it at all.
<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
Answer:
Option (c) is correct.
Explanation:
Given that,
Raw materials on hand = $32,000
Purchased an additional raw materials = $78,000
During November,
Raw materials were requisitioned = $95,000
Totaled indirect materials = $3,000
The journal entry is as follows:
Work in process inventory (95,000 - 3,000) A/c Dr. $92,000
Manufacturing overhead A/c Dr. $3,000
To Raw material A/c $95,000
The work in process is debited by $92,000 and raw material is credit by $95,000.