Answer:
The price level will increase 20%. The right answer is B.
Explanation:
In order to calculate how much will the price level increase, we require to calculate according to the data we have the new price level.
Hence, New price level = 6 + [ (1 - 4 / 10) * 2 ]
= 6 + [ (1 - 0.40) * 2 ]
= 6 + (0.60 * 2)
= 6 + 1.20
= $ 7.20
Therefore, the Increase in price level = (7.20 - 6) / 6
= 1.20 / 6
= 0.20=20 %
The price level will increase 20%.
Answer:
$1,002.01
Explanation:
Computation for the invoice price
Using this formula
Invoice price=Flat price +[Annual coupon*(Coupon payment days/ Numbers of days in a year)]
Let plug in the formula
Invoice price =$ 985 + 69*(90/365)
Invoice price= $1,002.01
Therefore the Invoice price will be $1,002.01
Answer:
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