The answer is <span>a. attempt to make large payments or bribes to influence policy decisions of foreign governments.</span>
Answer:
The correct answer is letter "D": yield to maturity.
Explanation:
Yield to Maturity or YTM refers to the required market interest rate bonds posses. YTM represents the anticipated return investors could obtain in case they hold the bond until maturity. YTM is expressed as an annual rate and it is calculated using the following formula:
![YTM = \sqrt[n]{\frac{Face Value}{Current Price}} - 1](https://tex.z-dn.net/?f=YTM%20%3D%20%5Csqrt%5Bn%5D%7B%5Cfrac%7BFace%20Value%7D%7BCurrent%20Price%7D%7D%20-%201)
where:
- n = <em>number of years to maturity</em>
- Face Value = <em>maturity value of the bond</em>
- Current Price = <em>price of the bond today</em>
Answer:
Fixed
Explanation:
The government keeps the exchange rate FIXED the the same rate.
The opportunity cost is stated in relative pricing, that is, the price of one option in comparison to another.
When there are numerous vendors in a market but no one is significant enough to control the price of a product. Because both items must be produced, the relative price must match the opportunity cost. If the opportunity cost of one good is lower in the home country than so will be the relative price.
As bananas cost $0.90 per kg, so, if a toothpaste is for $2.25, we are forgoing 2.25 kgs banana (2.25/0.9). Thus, the opportunity cost is 2.5 kg bananas which is equal to the relative price of bananas.
Therefore, relative price is an opportunity cost.
To know more about relative price click here:
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