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nata0808 [166]
3 years ago
8

At the initial equilibrium value of money and price level, the quantity of money supplied is nowless than the quantity of money

demanded. this contraction in the money supply will people's demand for goods and services. in the long run, since the economy's ability to produce goods and services has not changed, the prices of goods and services will and the value of money will
Business
1 answer:
tiny-mole [99]3 years ago
5 0
The value of money will FALL
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A 20-year maturity, 7.6% coupon bond paying coupons semiannually is callable in seven years at a call price of $1,170. The bond
g100num [7]

Answer:

a) YTC 5.895%

b) YTC being call at 1,120 6.6853%

c) we change time and call price 1,170 = 5.33189%

Explanation:

we have to calculate with excel for the PV of the coupon payment and the call price which matches the the

<em><u>First we calculate the price of the bond:</u></em>

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

C 38.000 1,000 x 7.6% / 2

time 40 (20 years x 2payment per year )

rate 0.033

38 \times \frac{1-(1+0.033)^{-40} }{0.033} = PV\\

PV $837.2785

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

Maturity   1,000.00

time   40.00

rate  0.033

\frac{1000}{(1 + 0.033)^{40} } = PV  

PV   272.89

PV c $837.2785

PV m  $272.8897

Total $1,110.1682

Now we solve for the YTC

given a price of 1,110 we receive an annuity of 38 dollars during 7 years and recieve 1,170

we do it in excel:

=PV(A2;14;38)+1,110.17/power(1+A2;28)

the first part is the coupon payment the second maturity

now we solve using goal seek to make this formula worth 1,170 changin a2 which is when we put a rate reference

a) 0.058950255

b)

=PV(A2;14;38)+1,110.17/power(1+A2;28)

we determinate our target as 1,120

0.066853426

c) we change time:

=PV(A2;8;38)+1,110.17/power(1+A2;8)

0.053318904

4 0
3 years ago
A ScrumMaster's role is to also be a Servant Leader. Which of the following characteristics is not a Servant Leader characterist
bulgar [2K]

Answer:

D. What are you going to do for me today?

Explanation:

The leader should be first a servant, having a desire to serve than to be served. This makes a leader has authority and not just power by having interactions with ones he leads. He is not just interested in building himself but contributing to growth and development of the people around him.

Therefore asking what one will do for you is not a Servant Leader characteristic because it puts the leader first before the people.

3 0
3 years ago
A manufacturer of a very labor-intensive product wishes to employ the 'experience curve' to predict the AVC associated with vari
Rasek [7]

Answer:

with the third doubling, the AVC = $9.11 per unit

Explanation:

The average variable cost (AVC) decreases by 10% with each doubling of cumulative output:

<u>Production level in units</u>                         <u>AVC per unit</u>

    1,000                                                   $12.50 per unit

    2,000                                                  $11.25 per unit

    3,000                                                  $10.13 per unit

    4,000                                                  $9.11 per unit

5 0
3 years ago
Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. Th
Brilliant_brown [7]

Answer:

The delegation is not effective and valid since the original contract was based on personal skills and it involves personal services.

Katherine's personal expertise is required to write the chapter and Dana does not necessarily possess the same expertise or skills as Katherine does.

4 0
4 years ago
Ben learns that the company was going to be laying off several employees over the next several months. He knew that the rumor mi
sleet_krkn [62]

Answer:

D. Call an all staff meeting and give everyone the news at once.

Explanation:

Instead of letting the rumors spread throughout the company, what Ben is supposed to do is have a meeting with his entire staff and let all of them know at once what's going on. This way, he will be clear and direct and won't allow for gossip to spread throughout his company and he himself will address the issue head-on. This way he won't leave room for misinterpretation as he will explain what is going to happen.

5 0
3 years ago
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