1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nadusha1986 [10]
3 years ago
5

Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Suppose that due to an increase in the expected inflation rat

e, the yields on both bonds increase by 1.0%. a. Calculate the new confidence index?
Business
1 answer:
ollegr [7]3 years ago
8 0

Answer: The new confidence index is 0.7143

Explanation: Consumer confidence index which is known as the confidence index is an index used for estimating the economy of the U.S, it is published by the conference board which shows the decree of excitement in peoples's activities on their savings and spendings.

To calculate the new confidence index;

STEP1: Add the bond increase to the current bond;

6% + 1% = 7%

4% + 1% = 5%

STEP 2: FIND THE NEW CONFIDENCE INDEX

5% ÷ 7% = 0.7143

The old confidence index can also be calculated as

4% ÷ 6% = 0.6667

You might be interested in
Points fo my homies eerrr eeerrr err goin a pull out a coop in the lot
postnew [5]
thank u i really a president
8 0
3 years ago
Read 2 more answers
Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct
Rama09 [41]

Answer:

$1,524 underapplied

Explanation:

Predetermined overhead rate = Estimated Manufacturing Overhead ÷ Estimated Activity.

                                                  = $560,324 ÷ 22,060

                                                  = $25.40

Applied Overheads = Predetermined overhead rate × Actual Activity

                                 = $25.40 × 22,000

                                = $558,800

<em>Where,</em>

Actual Overheads are  $560,324 (given)

<em>Conditions :</em>

If Actual Overheads > Applied Overheads, we say overheads are under-applied and if Actual Overheads < Applied Overheads, we say that overheads are over-applied.

<em>Therefore ,</em>

In our case, Actual Overheads : $560,324 > Applied Overheads : $558,800. Overheads have been under-applied by $1,524 ($560,324 - $558,800).

8 0
3 years ago
If government spending increases or personal income taxes decrease, what are the likely effects on output, price level, and inte
Mila [183]

When there is an increase in government spending, there will be an increase on the output, price level, and interest rates

<h3>What is a government spending?</h3>

This refers to the funds injected to the public sector on the acquisition of services such as education, healthcare, social protection, defense etc.

Most time, the effect of an an increase in government spending leads to an increase on the output, price level, and interest rates as it is a method of stimulate demand.

Therefore, the Option A is correct.

Read more about government spending

<em>brainly.com/question/25125137</em>

#SPJ1

7 0
1 year ago
Which of the following information you may obtain from a client is the best example of qualitative information?A)Whether he has
Oksanka [162]

The amount of his monthly net cash flow  is the best example of qualitative information

The choice usefulness, decision model approach to accounting theory plays a significant supportive role in the utilization of qualitative traits or qualities required for information. The attributes that make the data supplied in financial statements valuable to users are referred to as qualitative qualities.

Fundamental qualitative traits that are desired in accounting information are produced by the demand for accounting information from investors, lenders, creditors, etc. Accounting information has six distinct qualitative traits.

To lean more about qualitative refer here:

brainly.com/question/28483241

#SPJ4

6 0
1 year ago
You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose
sergiy2304 [10]
Took me a bit to understand what this is. I have no business sense at all.

Expected Rate of Return = 30%*5% + 9%*75% - 33% * (100 - 75 -5)%
Expected Rate of Return = 0.015 + 0.0675 - 33%*20%
Expected Rate of Return = 0.015 + 0.0675 - 0.066
Expected Rate of Return = 0.0165

This then is expressed as a %
0.0165 = 1.65 % Sounds like you are buying a US short term treasury.
If anyone else answers, take their answer.
 
3 0
3 years ago
Other questions:
  • Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the
    8·2 answers
  • Vending machines are most often used to sell:
    15·1 answer
  • (tco 1) you are fairly good at various and sundry home repairs. you arent very good at electrical things, or anything having to
    6·1 answer
  • Samantha put $18,500 into a savings account. after one month, the savings account grew to $18,962.50. after the second month, it
    12·2 answers
  • An investment that you bought for ____
    7·1 answer
  • Devon works as a customer service employee in a retail store. He understands the behaviors and feelings of his customers very we
    7·1 answer
  • Solstice Company determines on October 1 that it cannot collect $60,000 of its accounts receivable from its customer, P. Moore.
    12·1 answer
  • Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports.
    15·1 answer
  • Accounts payable $ 18400 Accounts receivable 11000 Accumulated depreciation – equipment 28000 Advertising expense 20600 Cash 150
    9·1 answer
  • Question 11 (3 points)
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!