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3 years ago

If a $1,000 bond is selling for 97, what is the selling price in dollars

Business

2 answers:

Degger [83]3 years ago

7 0

The Answer for this question is $970

nadya68 [22]3 years ago

7 0

Answer:

$ 970

Explanation:

A $1,000 bond with a selling price of 97 means the selling price of the bond is 97 % of the face value or original price.

In this case:

Original = $ 1 000

Selling = 97

= 0.97

The value = 0.97 × 1000

= $ 970

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4 years ago

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Algebra of the income-expenditure model Consider a small economy that is closed to trade, so that its net exports are zero. Supp

ioda

Answer:

a. The equilibrium income level is $100 billion.

b. The new equilibrium level of income will be equal to $500 billion.

c. This economy's multiplier is equal to 4.

Explanation:

a. Calculation of the equilibrium income level

Since;

Y= C + IP + G ........................... (1)

Where;

C = $20 billion + 0.75 × (Y – T)

G = $35 billion

IP=$60 billion

T = $20 billion.

Remove the billion now for simplicity purpose to include later, substitute the values into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $35

Y = $20 + 0.75Y - (0.75 * $120) + $95

Y - 0.75Y = $20 + $95 - $90

0.25Y = $25

Y = $25 / 0.25

Y = $100

Therefore, the equilibrium income level is $100 billion.

b. Suppose that government purchases are increased by $100 billion. The new equilibrium level of income will be equal to ______ billion.

With this, we now have:

G = $35 billion + $100 billion = $135 billion

Replace this with G in part a and substitute other values as already given in part a into equation (1) and solve for Y, we have:

Y = $20 + 0.75 * (Y – $120) + $60 + $135

Y = $20 + 0.75Y - (0.75 * $120) + $195

Y - 0.75Y = $20 + $195 - $90

0.25Y = $125

Y = $125 / 0.25

Y = $500

Therefore, the new equilibrium level of income will be equal to $500 billion.

c. Based on the effect of the change in government purchases on equilibrium income, you can tell that this economy's multiplier is equal to _______.

Since the change in government purchases makes equilibrium income level to increase from $100 billion to $500 billion, we can calculate the rate of change in the equilibrium income level as follows:

Rate of change in equilibrium income = (New income – Previous income) / Previous income = ($500 - $100) / $100 = 4

With the rate of change of 4, we can tell that this economy's multiplier is equal to 4.

This can be confirmed using the multiplier formula as follows:

Multiplier = 1 / (1 – MPC) ……………………….. (2)

Where;

MPC = 0.75 from the consumption equation given C = $20 billion + 0.75 × (Y – T).

Substitute for MPC in equation (2), we have:

Multiplier = 1 / (1 – 0.75)

Multiplier = 1 / 0.25

Multiplier = 4

Which is the same as already obtained above.

Therefore, this economy's multiplier is equal to 4.

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3 years ago

Darcy Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar

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Answer:

Effect on income= $15,000 favorable

Explanation:

Giving the following information:

It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $20,000 per year. Darcy Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased.

Year 0= -170,000 + 25,000 + 40,000= -105,000

Year 1 trough 6= 20,000*6= 120,000

Effect on income= $15,000 favorable

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In a town with exactly 1,000 residents, 60 percent of the residents make healthy choices and 40 percent of the residents consist

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Answer:

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3 years ago

Most organizations are not in business to provide information technology services, yet many have spent valuable time and resourc

ratelena [41]

Answer: Option (D) is correct.

Explanation:

In the following scenario, the organization have wasted time and resources on IT functions when they should have instead worked on factors such as marketing, customer service, and new product design.

If they would've used Outsourcing, they would've been able to work on their core instruments. Outsourcing is referred to as an contract in where one organization hires another to be culpable for a planned enterprise that is done internally, or often implicates carrying over individuals and assets from one organization to another.

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