What will the federal government (federal reserve bank) do in an attempt to encourage saving and investing?

Harry owns a Cadillac and a Porsche. Ryan has always wanted a Porsche and knows Harry owns one. Harry decides to sell his Cadill

seropon [69]

Answer:

mutual mistake

Explanation:

A mutual mistake happens when all the parties involved in a contract (two or more) are mistaken or do not know the correct information about some specific material fact that is relevant to the contract. In this case, the contract can be rescinded because Harry believes that Ryan wants to buy his Cadillac, while Ryan believes Harry is selling his Porsche.

Since both of them are mistaken and do not know relevant material facts regarding the contract, the contract can be terminated.

6 0

2 years ago

Currently, Bruner Inc.'s bonds sell for $1,250. They pay a $120 annual coupon, have a 15-year maturity, and a $1,000 par value,

elena-14-01-66 [18.8K]

Answer:

2.11%

YTM 0.089142162

YTC 0.068070103

Difference: 0.021072059 = 0.0211 = 2.11%

Explanation:

To calculate each rate we must solve for a rate at which the future coupon payment and maturity (or call value) equals the market price:

This is solve for excel and goal seek tool

It could also be solve with a financial calculator

YTC:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: $ 120

time 5 yeaars

rate 0.068070103 (solved with excel)

$120 \times \frac{1-(1+0.0680701028057608)^{-5} }{0.0680701028057608} = PV\\$

PV $494.5766

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity: $ 1,050 (call price)

time 5.00

rate 0.068070103

$\frac{1050}{(1 + 0.0680701028057608)^{5} } = PV$

PV 755.42

PV c $494.5766

PV m $755.4235

Total $1,250.0002

YTM:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Cuopon payment: $ 120

time 15 years

rate 0.089142162 (solved with excel)

$120 \times \frac{1-(1+0.0891421622982136)^{-15} }{0.0891421622982136} = PV\\$

PV $972.2006

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $ 1,000.00

time 15 years

rate 0.089142162 (solved with excel)

$\frac{1000}{(1 + 0.0891421622982136)^{15} } = PV$

PV 277.80

PV c $972.2006

PV m $277.7995

Total $1,250.0001

6 0

3 years ago

What kind of economy uses a free-enterprise system?

alekssr [168]

Answer:

The U.S. economy is a free enterprise system.

Explanation:

That means that individuals — and not the government — own most of our country's resources.

5 0

2 years ago

The Federal Reserve manages the nation’s currency and money supply by manipulating interest rates and acting as a lender to bank

Tomtit [17]

Answer: Setting interest rates and acting as a lender to banks

Explanation: The Fed or the Federal reserve is a central banking authority in any nation. It is responsible for maintaining the money supply in the economy. Some of the functions performed by the central bank are,

a. Setting interest rates and acting as a lender to banks

b. Print currency notes and coins

c. Setting the repo and the reverse repo rates

d. Clearing inter bank payments.

Therefore, the correct option is Setting interest rates and acting as a lender to banks.

5 0

3 years ago

Read 2 more answers

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit

Firdavs [7]

Answer: