Answer:
First project
Explanation:
The 2 options/ project been considered:
1. Buying 10% of shares in a publicly traded american company that owns five power generation units in Pakistan
2. To be partner with equal share with one private company in building a new power generation unit in Pakistan
The first option/project would have a higher required return because:
<em>- This company is already settled in the country having five power generation units in Pakistan. All these units are running and making profit.</em>
<em>- Investment Option 2 is high riskier as we do not know the details of the new company and there are so many unforeseen circumstances surrounding establishing such project in the company. It will also take time to establish in order to start make it profitable.</em>
Answer:
statistical data relating to the population and particular groups within it.
Explanation:
!!
Answer:
Explanation:
Coupon rate = 5.07%
Yield to maturity = 4.84%
Rate = Yield/2 = 2.42%
N = 14 = 14*2 semiannually = 28 semiannually
Face value = $1000
PMT = (face value*coupon rate)/2 = $25.35
Need to find price which is PV
Using the financial calculator, PV = $1023
Number of bonds to be issued = 41,000,000/1023 = 40,078
Answer and Explanation:
As per the data given in the question,
The central bank have various tools to apply expansionary policy and these tools are :
- Reserve ratio.
- Discount rate.
- Open market operations.
The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.
Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.
