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4 years ago

if the federal Reserve buys 40000 in treasury bonds from a bank at 6% interest what is the immediate effect on the money supply

Business

2 answers:

scoundrel [369]4 years ago

8 0

I don’t know the answer sorry

prohojiy [21]4 years ago

6 0

Answer:it’s is increased by 40,000.

Explanation:

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B. federal government

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If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely o

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Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity 5 years Rating: Moodys: BAA3 Price: $108.093 Calculate: Y

rewona [7]

Answer:

Answer for the question:

Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity 5 years Rating: Moodys: BAA3 Price: $108.093 Calculate: Yield to maturity S&P: BBB- 2) SAFEWAY INC SR NT 5.00000% Coupon: 5.000% Maturity: 5 years Rating: Moodys'BAA3 Price: $101.180 S&P: BBB a) Calculate: Yield to maturity b) Suppose the bond is callable in 3 years at $ 110. Using the price above find the yield to call Hint: use the FV to be $110 instead of $ 100. And the time to maturity 3 years instead of 5 years

Is given in the attachment.

Explanation:

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3 years ago

Kaspar and Ludger, two unrelated calendar year corporations, have the following transactions for 2019: Kaspar Corporation Ludger

Karolina [17]

Answer:

The dividends received deduction <u>for Kaspar Corporation is $70,000</u>, while the dividends received deduction f<u>or Ludger Corporation is $230,000</u>.

Explanation:

Note that the data in the question are merged together but they are first sorted in the attached excel file before answering the question as follows:

The dividends received deduction refers a federal tax deduction that are enjoyed in the U.S. by some corporations that receives dividends from related entities.

Based on the general rule for dividends received deduction, if the ownership by the company receiving the dividend in the company paying the dividend is less than 20%, the dividends received deduction is the 70% of the dividend received.

Since both Kaspar and Ludger have just 15% ownership which is less than 20% in domestic corporation from which they received dividends, their dividends received deduction can therefore be determined using the following formula:

Dividend received deduction = Dividend received * 70% .............. (1)

Using equation (1), we have:

Kaspar's dividend received deduction = $100,000 * 70% = $70,000

Ludger's dividend received deduction = $230,000 * 70% = $161,000

Therefore, the dividends received deduction for Kaspar Corporation is $70,000, while the dividends received deduction for Ludger Corporation is $230,000.

Download xlsx

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3 years ago