Ask question

Ask question

All categories

IrinaVladis [17]

3 years ago

8

A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivale

nt and effective annual yield to maturity of the bond if the bond price is $960.

1 answer:

Gnom [1K]3 years ago

3 0

Answer:

The bond equivalent YTM = 8.36%

Effective annual YTM = 8.53%

Explanation:

The following image states the explanation:

You might be interested in

If the economy starts below full employment, an expansionary fiscal policy will shift the aggregate demand curve from _____ to _

MrRissso [65]

The expansionary fiscal policy will shift the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

<h3>What is the below full employment?</h3>

Its means when an the short-run real gross domestic product is lower than that same long-run potential real gross domestic product.

Hence, the economic situation will elicit a policy of expansionary fiscal which will affect the aggregate demand graph.

Therefore, the aggregate demand curve from <u>AD0</u> to <u>AD1</u> and equilibrium will move from point <u>a</u> to <u>b</u> if the economy starts below full employment.

Read more about aggregate demand

<em>brainly.com/question/1490249</em>

7 0

3 years ago

Shep goes to his favorite coffee shop every morning and always buys one large latte, no matter whether there is a special or not

lozanna [386]

Answer:

Price elasticity of demand = 0

Explanation:

The price elasticity of demand is zero because Shep's demand for lattes is perfectly inelastic since an alteration in price (i.e., half-price Mondays) does not affect consumption in the slightest, which means that he will always consume exactly one latte every morning regardless of price.

3 0

4 years ago

Dianne Ruth withdrew $8,000 from her educational savings account and used $6,000 to pay for qualified higher education expenses.

trasher [3.6K]

Answer:

$7,600

Explanation:

Calculation to determine How much of the $8,000 is tax free

Step 1 is to calculate the % using this formula

%=Savings ratio ROC Contributed/Total balance

Let plug in the formula

%=$20,000/$25,000

%= .80*100

%=80%

Step 2 is to calculate the ROC tax free using this formula

ROC tax free=% x Distribution

Let plug in the formula

ROC tax free=.80x 8000

ROC tax free=$6,400

Step 3 is to Contained earnings in distribution using this formula

Contained earnings in distribution=Distribution - ROC tax free

Let plug in the formula

Contained earnings in distribution=$8,000-$6,400

Contained earnings in distribution= $1,600

Step 4 is to calculate Excludable earning using this formula

Excludable earning=(Qualified exp/distribution ) x Earning contained

Let plug in the formula

Excludable earning=($6,000/$8,000) x $1,600

Excludable earning= $1,20/

Step 5 is to calculate the Taxable amount using this formula

Taxable =Earnings - Excludable

Let plug in the formula

Taxable=$1,600-$1,200

Taxable =$400

Now let determine the Tax free using this formula

Tax free = Distribution- Taxable

Let plug in the formula

Tax free=$8,000- $400

Tax free=$7,600

Therefore How much of the $8,000 is tax free will be $7,600

8 0

3 years ago

Which of the following careers is most likely to require business skills? a)Systems Analyst b)Hardware Engineer c)Software Engin

mezya [45]

Answer:

System Analysis

Explanation:

5 0

4 years ago

Read 2 more answers

The five competitive forces model suggests the bargaining power of buyers may affect industry competition. Which of the followin

Natalka [10]

Answer: E. Walmart has significant bargaining power over its suppliers, which decreases the profitability of the suppliers.

Explanation:

Walmart as buyers have significant bargaining power over their suppliers because they are quite large in size and therefore buy in bulk.

As a result of this, they can negotiate prices with suppliers that favor them not the suppliers which will decrease the profitability of the suppliers who would be compelled to sell to Walmart because of how much of their goods Walmart can buy.

3 0

3 years ago