The summary .................. including trade, FOREIGN AID and the remittance............. Balance of payment is the record of all economic transactions between the residents of a country and the rest of the world in a particular period of time. A balance of payment allows a country to monitor its import and export rates.
The answer is C households and business
Answer:
Correct option A
Explanation:
Pareto efficiency implies that resources are allocated in the most economically efficient manner, but does not imply equality or fairness.
The manager at the local branch has offered transfer to Austin, this simply implies that the resources spent on Austin will be reallocated to other areas.
Therefore, this will make the manager better off with the transfer and not worse off.
Answer:
Pretax cost of debt = 7.02%
Aftertax cost of debt is 4.56%
Explanation:
As of today, the time to maturity of this bond is 16-2 = 14 years.
You can solve the pretax cost of debt; YTM using the following inputs in a financial calculator;
Time to maturity; N = 14*2 = 28
Face value; FV = 1000
Semiannual coupon payment ; PMT = (6%/2) *1000 = 30
Price of the bond ; PV = 0.91* 1000 = 910
Compute the semiannual interest rate ; CPT I/Y = 3.510%
Since YTM is an annual rat; multiply 3.510% by 2
Pretax cost of debt = 7.02%
b.) Aftertax cost of debt = pretax cost of debt * (1-tax)
= 7.02% *(1-0.35)
= 4.563%
Therefore, aftertax cost of debt is 4.56%
