Answer:
The correct answer is b. substitutes, complements.
Explanation:
One argument for the growing income gap between the unskilled and skilled workers in America is that unskilled workers are <u>substitute</u>s with technology and skilled are <u>complements</u> with technology.
Answer:
1. PV = 101.87
2. YTM = 7.46%
3. Price of the bond is $100.92
Explanation:
PV = 8.5/ (1.065) + 108.5/ (1.075)2
PV = 7.981 + 93.889
PV = 101.87
Part B:
PV = 101.870
FV = 100
N = 2
PMT = 8.5
Using Financial Calculator:
r = 7.459237
YTM = 7.46%
Part C:
The forward rate for next year, derived from the zero-coupon yield curve, is approximately:
(1 + forward Rate) = (1 + 0.075)2/ (1.065)
forward rate = 8.51%
Price of the bond = 108.5/ (1.0851)
Price of the bond = 100
Part D:
Interest Rate = 8.51% - 1% = 7.51%
Price of the bond = 108.5/ (1.0751)
Price of the bond = 100.92
Answer:
The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.
Explanation:
Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.
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