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aleksley [76]
3 years ago
8

Dillon can buy a fixed-rate bond with a 4% coupon, a $10,000 principal, and five years left to maturity or a TIPS with the same

principal and age to maturity with a 2% coupon. Compare the two bonds if inflation runs 3% per year on average.
Select the best answer from the choices provided.

1The fixed-rate bond has a better yield.

2 The TIPS has a better yield.

3 Both yields are roughly equivalent.

4The yields vary with inflation.
Mathematics
2 answers:
Keith_Richards [23]3 years ago
7 0
<span>3 Both yields are roughly equivalent.</span>
malfutka [58]3 years ago
4 0

Answer: 1 The fixed-rate bond has a better yield

Step-by-step explanation:

a coupon rate = 4%

principal = $ 10000

x/ $10000 = 4% = 4/100

x = $400

for 5 years = $400 x 5 = $2000

with inflation of 3%

3/100 x $10000 = $300

adjusted principal = $10000 + $300 = $10300

coupon rate x adjusted principal = 4/100 x$10300 = $412per year

for 5 years =  5 x $412= $2060

b) Dillon buys buy a fixed-rate bond with a $10,000 principal

TIPS = Treasure Inflation-Protected  Security rises with its principal as inflation rises = 3% per year on average

coupon rate = 2 %

without inflation = 2/100 x $10,000 = $200

with inflation upward by 3% = 3/100 x $10000 = $300

adjusted principal = $10000 + $300 = $10300

thus coupon rate x adjusted principal = 2/100 x $10300 = $206 peryear

for 5 years =  5 x $206= $1030

Therefore $2060 > $1030

The fixed bond rate has a better yield

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vampirchik [111]

Answer:

100-60=40

40/4=10

10*$1=$10

$12+$10=$22

3 0
2 years ago
9 pt = How much fl oz
____ [38]

Answer:

9 pints would equal 144 ounces

Step-by-step explanation:

Pints

The US liquid pint is a unit of fluid volume equal to one-eighth of a gallon, one-half of a quart, or two cups. The liquid pint should not be confused with the dry pint (US) or the imperial pint, which are different units.

The pint is a US customary unit of volume. Pints can be abbreviated as pt; for example, 1 pint can be written as 1 pt.

Fluid Ounces

The US fluid ounce is a unit of volume equal to 1/16 of a pint or 1/8 of a cup. The fluid ounce is sometimes referred to as an "ounce" but should not be confused with the unit of mass. One fluid ounce is equal to just under 29.6 milliliters, but in nutrition labeling, one fluid ounce is rounded to exactly 30 milliliters.[1]

The fluid ounce is a US customary unit of volume. Fluid ounces can be abbreviated as fl oz, and are also sometimes abbreviated as fl. oz. or oz. fl.. For example, 1 fluid ounce can be written as 1 fl oz, 1 fl. oz., or 1 oz. fl..

Pint to Fluid Ounce Conversion Table

Pint measurements converted to fluid ounces

Pints Fluid Ounces

1 pt 16 fl oz

2 pt 32 fl oz

3 pt 48 fl oz

4 pt 64 fl oz

5 pt 80 fl oz

6 pt 96 fl oz

7 pt 112 fl oz

8 pt 128 fl oz

9 pt 144 fl oz

10 pt 160 fl oz

11 pt 176 fl oz

12 pt 192 fl oz

13 pt 208 fl oz

14 pt 224 fl oz

15 pt 240 fl oz

16 pt 256 fl oz

17 pt 272 fl oz

18 pt 288 fl oz

19 pt 304 fl oz

20 pt 320 fl oz

21 pt 336 fl oz

22 pt 352 fl oz

23 pt 368 fl oz

24 pt 384 fl oz

25 pt 400 fl oz

26 pt 416 fl oz

27 pt 432 fl oz

28 pt 448 fl oz

29 pt 464 fl oz

30 pt 480 fl oz

31 pt 496 fl oz

32 pt 512 fl oz

33 pt 528 fl oz

34 pt 544 fl oz

35 pt 560 fl oz

36 pt 576 fl oz

37 pt 592 fl oz

38 pt 608 fl oz

39 pt 624 fl oz

40 pt 640 fl oz

Please don't report this. :(

8 0
3 years ago
Brian invests £600 into his bank account.
Savatey [412]

Answer:

It will be £2520

Step-by-step explanation:

  1. 3.2=
  2. \frac{16}{5}
  3. \frac{16}{5}  \times 100 = 320
  4. 320
  5. 320 \times 6 = 1920
  6. 1920 + 600 = 2520
7 0
3 years ago
Simplify each expression
Rzqust [24]

Answer:

See below

Step-by-step explanation:

1.

-6(a + 8)

Distribute the -6.

-6a - 48

2.

4(1 + 9x)

Distribute the 4.

4 + 36x or 36x + 4

3.

6(-5n + 7)

Distribute the 6.

-30n + 42

4.

(9m + 10) * 2

Rewrite.

2(9m + 10)

Distribute the 2.

18m + 20

5.

(-4 - 3n) * -8

Rewrite.

-8(-4 - 3n)

Distribute the -8.

32 + 24n or 24n + 32

6.

8(-b - 4)

Distribute the 8.

-8b - 32

7.

(1 - 7n) * 5

Rewrite.

5(1 - 7n)

Distribute the 5.

5 - 35n or -35n + 5

8.

-6(x + 4)

Distribute the -6.

-6x - 24

9.

5(3m - 6)

Distribute the 5.

15m - 30

10.

(-6p + 7) * -4

Rewrite.

-4(-6p + 7)

Distribute the -4.

24p - 28

11.

5(b - 1)

Distribute the 5.

5b - 5

12.

(x + 9) * 5

Rewrite.

5(x + 9)

Distribute the 5.

5x + 45

5 0
3 years ago
Math help &lt;3............
Anna007 [38]
1.)18 = 2(4 + x) ||
2.) 18 = 8 + 2x --- Distribute. ||
3.) 10 = 2x --- Isolate the variable by collecting like terms ||
4.) 5 = x 

I'd say A. is a good choice.
8 0
3 years ago
Read 2 more answers
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