Answer:D) the bond is probably being called by the issuer because interest rates went up
This statement is not true because when interest rates go up the issuer is at an advantage as he had previously borrowed money at a interest rate which is lower than the present interest rate, as interest rates have risen. Also when interest rates rise and the issuer calls the bond he will have to pay higher interest to re borrow money and this is foolish thus the issuer will not call the bond when interest rates rise. The issuer will call the bond when interest rates fall, as the issuer can re issue the bonds and borrow money at lower interest rates.
Explanation:
The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.
<h3>What do you mean by monetary policy?</h3>
Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.
The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.
Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.
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Answer:
a. No effect
b. Decreases in total asset
c. No effect
d. Decreases in total stockholder equity
Explanation:
Given that
Number of shares purchased = 10,000 shares
Par value = $10
Common stock = $290,000
By using the above information, we can interpret that
a. There is no effect on the net income
b. The total asset is decreased by $290,000 as it reduces the cash balance for $290,000
c. There is no effect on the total paid-in-capital
d. Total stockholder equity is decreased by $290,000
We assume that treasury stock is accounted for using the cash method
Many people tend to be too conservative when investing their retirement funds this is true
- Medical expenses. Most of us will experience rising medical costs as we age, which could be problematic without adequate preparedness.
- Market turbulence, inflation, and so on
- Running out of money, losing a spouse, etc.
- Rising inflation, shifting interest rates, erratic stock market behavior, and ineffective retirement plans are just a few examples of financial hazards.
- Neglecting Your Long-Term Plan. It's far too simple to be seduced by busy markets and promises of substantial rewards.
- Taking out loans against retirement funds, skipping required minimum distributions, etc.
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The probability that two of the next three customers will make a purchaseis mathematically given as
P(1) =0.441
<h3>What is the
probability that two of the next three
customers will make a purchase?</h3>
Generally, the equation for Probablity is mathematically given as
A)
P(1) = 3 C 1 (0.3)^1 (0.7)^2
P(1) =0.441
B)
n=1000
E (x) =np = 1000x0.3
E (x) =3.00
C)
Variance= mpq
Variance= 300 x0.7
Variance= 210
In conclusion,
P(1) =0.441
E (x) =3.00
Variance= 210
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