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zhannawk [14.2K]
3 years ago
9

A 10-year German government bond (bund) has a face value of €100 and a coupon rate of 5% paid annually. Assume that the interest

rate (in euros) is equal to 6% per year. What is the bond’s PV?

Business
1 answer:
cestrela7 [59]3 years ago
8 0

Answer:

€92.64

Explanation:

The present value i.e PV formula is used that is shown in the attached spreadsheet  

The NPER reflects the time period.

Given that,  

Future value = €100

Rate of interest = 6%

NPER = 10 years

PMT = €100 × 5% = €5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be €92.64

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A man purchased a magazine at the airport for $ 2.79 . The tax on the purchase was $ 0.15 .What is the tax rate at the​ airport?
lana66690 [7]

Answer:

Tax on the airport= 5.376%

Explanation:

The tax rate on the airport can be calculated from  the price of the magazine on the airport and tax which is on the magazine when purchasing from the airport.

Tax rate at the airport=(Tax on the Purchase)/(Price of magazine at which it is purchased)

Tax\ rate\ at\ the\ airport=\frac{\$0.15}{\$2.79}

Tax\ rate\ at\ the\ airport=0.05376

In percentage:

Tax on the airport= 0.05376*100

Tax on the airport= 5.376%

4 0
3 years ago
Dmitri recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from
Lelechka [254]

Answer:

B. FALSE

Explanation:

This economy is currently at its natural rate of unemployment because there is <u>no cyclical unemployment</u>

In macroeconomics, <u>full employment is the level of employment rates where there is no cyclical or deficient-demand unemployment. </u>

<u>The economy is considered to be at full employment when the actual unemployment rate is equal to the natural rate</u>.

Hence, it is false to allege that the economy in the given scenario is not currently at its natural rate of unemployment

7 0
2 years ago
Aggregate Demand is everything produced while Simple Demand is one good. Which statement reflects Aggregate Demand?
lys-0071 [83]
Calculating real output
8 0
2 years ago
One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar
raketka [301]

Answer:

She is better off by $40,

Please kindly go through the explanation section for rest of the answers.

Explanation:

From the Question,

Grocery saving = 40%

Laptop saving = 2.5%

Absolute saving in grocery = $4

Absolute saving in Laptop =$10

Yes he should sacrifice 20 mins to save $10 since he does the same for less savings

Second case:

Since Ted is depositing money for only 6 months at 10% interest rate, he is giving up half his annual interest of (0.1*750)/2 = $37.5

Third case:

Interest accrued on student loan = 0.07*2000 = $140

Interest on credit card = $75 + (0.07*1500) = $180

She is better off by $40.

7 0
3 years ago
The production function for laser eye surgery is given by Q = 20K0.5L0.5, where Q is the number of laser eye surgeries performed
Naddika [18.5K]

The marginal product of labor is 10.

Data and Calculations:

Production function = Q = 20K0.5L0.5 = 20 x K x 0.5 x L x 0.5

Where:

Q = number of surgeries per day

K = number of machines

L = number of employees

Assuming that:

K = 2

L = 2

Therefore, Q1 = 20 x 2 x 0.5 x 2 x 0.5

= 20 surgeries per day

Q2 = 20 x 2 x 0.5 x 3 x 0.5

= 30 surgeries per day

Change in productivity = 10 (30 - 20)

Change in labor = 1 (3 - 2)

Marginal product of labor = change in output / change in labor

= 10 (10/1)

Thus, the marginal product of labor for the production function is 10.

Learn more: brainly.com/question/4186143

7 0
2 years ago
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