B. because it is only used by the military and not the public
Answer:
Price of bond is = $ 1057
Explanation:
As we know that;
Price of bond = C * [1-(1+r)∧-n] / r + F / (1+r)∧n
where C = periodic coupon payment = 1000 * 6%= 60
F = Face value of bond = 1000
r = yield to maturity = 5% = 0.05
n = number of periods till maturity = 7 years
Putting values;
= 60 * [ 1- (1+ 0.05)∧-7 ]/ 0.05 + 1000 / (1+0.05)∧7
= 60 * (0.2893 / 0.05) + 710
= 60 * 5.786 + 710
= 347.16 +710
= 1057
Answer:
False
Explanation:
The growth of 4% for 25 years would nominally signify a 100% increase and you might think that the economy has double its size. But you must take into account that’s this is a compound growth then the economy would reach the double of its size before 25 years.
Think that he initial size of the economy is 10 and it grows 4% then an annual growth will be 10,4 now the compound grow is adding up 0,4 to the initial size of 10. Then you recalculate a growth of 4% for the second year this means 10.816 grow.
If you notice the extra 0.016 increase for the second year is the effect of calculating the 4% increase based on the previous size 10 plus 0.4.
Currently, the FAFSA protects dependent student income up to $6,660. For parents, the allowance depends on the number of people in the household and the number of students in college. For 2019-2020, the income protection allowance for a married couple with two children in college is $25,400.
