Answer:
Semestral rate= 3.51%
Annual rate= 7.02%
Explanation:
Giving the following information:
Par value= $2,000
Present value= $1,956.84
Coupon= (0.0684/2)*2,000= $68.4
Number of periods= 24*2= 48 semesters
<u>To calculate the YTM, we need to use a financial calculator:</u>
Function= CMPD
n= 48
I%= SOLVE = 3.51%
PV= 1,956.84
PMT= -68.4
FV= -2,000
Semestral rate= 3.51%
Annual rate= 3.51*2= 7.02%
As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.
Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.
If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.
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<span>This 2 year period begins on the date that the insurance company dates the policy. When a person signs up for an insurance policy they have to provide all accident reports from the past for the insurance company to make sure they are paying the correct amount for what they accrued in the past. Insurance companies base someones rates off of how likely they believe they may file a claim against their </span>policy.
In order for Millard’s Department Store to meet their
immediate needs, they should utilize the short term financing. Short term
financing is defined as a way of business financing by means of obtaining
finance that is usually in a term of one year or less than one year. It is
usually for about 4-6 months.