Answer:
a. 8.30 %
b. $918.65
c. 16,60%
Explanation:
a. What is the bond's yield to maturity
Using a Financial Calculator Enter the following respective values and find i.
N = 10×2 = 20
Pmt = $1,000 × 8.6 % / 2 = $43
P/yr = 2
Pv = $ 1,035.77
Fv = $1,000
YTM / i = ?
i = 8.30%
Therefore yield to maturity is 8.30 %
b. What will be the bond's price
Using a Financial Calculator Enter the following respective values and find Pv .
N = 10×2 = 20
Pmt = $1,000 × 8.6 % / 2 = $43
P/yr = 2
Fv = $1,000
YTM / i = 9.90%
Pv = ?
Pv = $ 918.65
Therefore the bond's price is $918.65
c. What is the bond's yield to maturity
bond's yield to maturity - expressed as an APR = 8.30 % × 2
= 16,60%
Answer:
The correct answer is: rise; Shift the long-run aggregate supply curve to the left (letter "C").
Explanation:
The supply curve portraits the interaction between the price of a good or service and the quantity supplied. The higher the price, the lesser the quantity provided will be and vice versa. In the graph, the price appears in the vertical axis while the quantity in the horizontal axis. If higher the price, the curve will move to the left. If higher the quantity, the curve will move to the right.
In the example, as the wages (<em>price</em>) will be higher, the number of jobs offered (<em>quantity</em>) will decrease, causing the unemployment rate to increase. As high as the wages are in the long term, they will drag the supply curve to the left in the graph.
Answer:
You will not have enough.
Explanation:
The rate of the investment is compounded, so the value at year 1, will be the value at year 0, increased in a 4%. Then, the value at year 2 will be the value at year 1, increased in other 4%, that's equal to the value at year 0 increased twice at 4%.
So, the formula to calculating the value at year 15 is 75,000*(1.04)^15 = 135,070.63. THen, it will not be enough. You have to invest at least 214,000/1.04^15 = 118,826.20 at year 0, at a rate of 4%.
Answer: A. less; higher
Compared to money market accounts, CDs are less liquid and have higher interest rates.
Explanation:
Certificates of deposit (CDs) refer to a saving certificate issued by a federally chartered bank which has a fixed interest rate and fixed date of withdrawal (the maturity date). There exists restriction in accessing the funds until the maturity date of the investment. The maturity rates vary from 30 days to six months or more and the amount of the face value also vary greatly. Certificates of deposit (CDs) are less liquid and have higher interest rates. Interest rates are the amount charged by a lender to a borrower for using his or her assets.