U didn’t put like half the question luv
Answer:
<em>D. To allow consumers and producers to make their
</em>
<em>own decisions</em>
Explanation:
A <em>free-market system</em> is the market form determined by free market forces of demand and supply.
No government intervention takes place in this form of market as in a centrally planned economic system. This non- intervention of the government prevents <em>economic distortions</em> in the system, which is good for the market.
In a <em>free market system</em> the forces of demand and supply, decide the price of the goods and thereby the output adjustments. The consumers are free to decide the demand and producers are free to decide the product the supply of goods.
Hence, it can be said that <em>the purpose of a free-market system is to allow consumers and producers to make their own decisions.</em>
Answer:
a. 1.8716%
b. $13,937.9955
Explanation:
The computation is shown below:
a. For accrued interest
= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)
= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)
= 2.3750% × 0.7880
= 1.8716%
b. Now the dirty price is
= Face value × (accrued interest percentage + current price quoted on the bond)
= $13,000 × (1.8716% + 105.34375%)
= $13,000 × 107.21535%
= $13,937.9955
By applying the above formulas we can get the accrued interest and the dirty price
