The yearly return of the investor is given to be 11.069%
<h3>How to find the YTM</h3>
In order to do this we have to make use of the Rate function in excel
This would be given as
=RATE(nper, PMT, PV, FV)
where Nper is 5 years
PMT is = $1,000*10% = $100
PV = $980
The future value Fv is given as $1,000
Hnece we would have to type in excel
RATE(5,100,-980,1000)
This would give us the value of the YTM as 10.5348%
Next would be to find the rate of return of this investor. This would be the rate that he actually earned.
We would also use the rate function
=RATE(nper, PMT, PV, FV
Npe = 4 years
PMT = $1,000*10% = $100
PV = $980
FV = $1,020 that is the amount for which the bond was sold
=RATE(4,100,-980,1020)
The solution would be = 11.0698%
Thus we can say that the return earned on investment is 11.0698%
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Answer:
B.
Explanation:
Social Security is Payroll Tax.
Answer:
The main economic benefit that debt rescheduling has for developing countries is that it changes principal and interest payments to more favorable conditions.
This means that after the reschedule, developing countries will have to put less resources into the payments of public debt, which allows them to have more resources available for other public investments like education, healthcare, and infraestructure.
A dollar in the present day is worth less than that of the dollar in the future, because of returns generated over reinvestment.
<h3>What is reinvestment?</h3>
A process of investing something, which is invested more than once after generating returns over it, is known as a reinvestment. A currency is the most widely reinvested class of asset, and generally its value appreciates.
Hence, the significance of reinvestment is given above.
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Answer: C. inefficiently low; inefficiently high
Explanation:
If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.
However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.