Answer:
b) because it allows specialization, which increases total output
Explanation:
Specialization is when a nation or individual concentrates its productive efforts on producing a limited variety of goods. It oftentimes has to forgo producing other goods and relies on obtaining those other goods through trade.
Answer:
Yield to maturity is 7.93%
Yield to call is 7.83%
Explanation:
I calculated both the yield to maturity and yield to call using the rate formula in excel which is =rate(nper,pmt,pv,-fv)
nper is the year to maturity and year to call of 18 years and 8 years respectively.
pmt is the periodic coupon payment is 9%*1000=$90 in each case.
pv is the present value in each case of $1100.35
The future value which is the redemption value is $1000 for yield to maturity and $1060 for yield to call
Find attached detailed calculation
Answer:
Viatical settlements may sound great on the surface but they present a lot of unique risks. Follow-on Investment Risk – some life policies are fully paid for, but many require you to continue to pay premiums for many years (or all the way up to the death of the insured).
Explanation:
Answer:
Total FV= $46,008.31
Explanation:
Giving the following information:
Deposit 1= $12,000
Deposit 2= $15,000
Deposit 3= $10,000
Interest rate= 0.055
<u>To calculate the future value, we need to use the following formula on each deposit:</u>
FV= PV*(1+i)^n
FV1= 12,000*(1.055^5)= 15,683.53
FV2= 15,000*(1.055^4)= 18,582.37
FV3= 10,000*(1.055^3)= 11,742.41
Total FV= $46,008.31
