If people lost confidence in the government which would have the least value?
a) fiat money
b) representative money
c) commodity money
d) gold standard
Answer:
Fiat money
Explanation:
Fiat money is a type of money or currency that is used as money because it is issued and backed by the government but it does not have any intrinsic value.
It has no intrinsic value which means that it does not have any value of its own and it is maintained by the government. Therefore, If people lost confidence in the government the kind of money that would have the least value is fiat money
1) by providing affordable medical care
Answer:
we will sell bond and invest for better investments
Explanation:
we know here that Yield on Treasury Bond of Grandfather = 2.25%
so we believe interest rate will be continue for rise
Bond are valued = $950
so we the Bond and invest the proceed for better interest rate
and
we know Grandfather bond price will be decrease if rate increase as that we predict
because we know Bonds prices and the interest rate is inversely proportional to the each other
so as that if interest rate increases Bonds prices will be decrease
and the Vice Versa
so that we will sell bond and invest for better investments
because here if once the interest rate increase then he will selling point regarding for Bond and price will be fall
Answer:
The invoice price of the bond will be $100,127.88
Explanation:
Bonds are nothing but the debt instrument which a company uses to raise capital from the general public, these bonds can be of both short and long term period.
In the question it is given that bond has a coupon period of 182 days which means the bond is of short term period. Coupon rate of 7% means the bond gives the interest of 7% to its holder semiannually every year on January 15 and July 15.
It is given that the ask price for the bond on January 30 is 100.125 percent on par value of the bond which we are assuming to be $1000, which means the ask price is
$1000 X 100.125 = $100,125 ( ASK PRICE)
now we have to calculate the interest, remember the semiannually payment of interest has already been made on January 15 which means we have to find interest for only 15 days which will be taken out on par value
INTEREST = $1000 x 7% x 15 / 30
= $1000 x .07 x 1/ 2
= $35
INVOICE PRICE = INTEREST X \frac{TOTAL \: NUMBER \: OF \: DAYS}{COUPON \: PERIOD} + Ask price
= $35 X 15 / 182
= $2.884
Now adding this amount in to ask price
$100,125 + $2.884
= $100,127.88 ( INVOICE PRICE)