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Morgarella [4.7K]
3 years ago
15

Treasury bills have a fixed face value (say, $1,000) and pay interest by selling at a discount. For example, if a one-year bill

with a $1,000 face value sells today for $950, it will pay $1,000 $950 $50 in inter- est over its life. The interest rate on the bill is there- fore $50 $950 0.0526, or 5.26 percent.a. Suppose the price of the Treasury bill falls to $925. What happens to the interest rate? b. S uppose, instead, that the price rises to $975. What is the interest rate now? c. (More difficult) Now generalize this example. Let P be the price of the bill and r be the interest rate. Develop an algebraic formula expressing r in terms of P. ( Hint: The interest earned is $1,000 − P . What is the percentage interest rate?) Show that this formula illustrates the point made in the text: Higher bond prices mean lower interest rates.

Business
1 answer:
Snezhnost [94]3 years ago
3 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smiths
OleMash [197]

Answer:

The correct answr is C.

Explanation:

Giving the following information:

Cost Machine Hours

January $52,200 20,000

February 75,000 29,000

March 57,000 22,000

April 64,000 24,500

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)

Variable cost per unit= (75,000 - 52,200) / (29,000 - 20,000)= 2.53

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 75,000 - (2.53*29,000)= 1600

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 52,200 - (2.53*20,000)= 1600

4 0
3 years ago
A successful biologist’s main interest area would be _____.
SpyIntel [72]

it would be scientific

8 0
3 years ago
Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter t
stira [4]

Answer:

foreign franchising

Explanation:

A system based on selling the right to replicate in overseas markets a profitable business format. The franchisor gives the franchisee exclusive rights to sell its goods or services in installed and fitted establishments as well as the right to use copyrights.

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4 0
3 years ago
Diane has created the following code:
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C is your answer (ik it’s likely a little late now, but this will help others who need it‍♂️)
7 0
3 years ago
In year 2, Rossman Corp, changed its inventory method from FIFO to the weighted average method. The change resulted in a decreas
Mila [183]

Answer:

True

Explanation:

The reason is that the opening inventory value of year 2 is the closing amount of the year 1. Its similar to the closing cash amount left in till at the end of year 1 is the opening amount at the year 2. So the opening inventory of year 2 is closing inventory of year 1. This means the closing inventory of year 1 has decreased by $10,000.

As we know that:

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This means if the closing amount increases the cost of goods decreases and in the given scenario the closing inventory of year 1 has been decreased which means that the cost of goods sold has increased which will decrease the profit. And if the profit decreases then:

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As the profit has decreased the earning per share will also decrease.

5 0
3 years ago
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