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Aleonysh [2.5K]
3 years ago
7

You purchased a bond at a price of $1,700. In 20 years when the bond matures, the bond will be worth $10,000. It is exactly 13 y

ears after you purchased the bond and you can sell the bond today for $6,700. If you hold the bond until it matures, what annual rate of return will you earn from today
Business
1 answer:
ryzh [129]3 years ago
8 0

Answer:

<u>Annual rate of return which will be earned from today is 5.89%</u>

Explanation:

FV = PV (1+r)^n

r is int Rate per anum abd n is balance period

10000 = 6700 ( 1 + r)^n

10000 = 6700 ( 1 + r)^7

( 1 + r)^7 = 10000 / 6700

= 1.4925

1+r = 1.4925^(1/7)

= 1.0589

r = 1.0589- 1

= 0.0589 i.e 5.89%

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explain how Adam Smith describes the market economy and role of consumers , producers , workers, savers ( investors) , and borro
astraxan [27]

Answer:

As described below.

Explanation:

  • As explained by Adam smith a market economy in his wealth of nations. Which is an interplay of the supply and demand, where the role of the customer's producers and the worker's investors and the borrows all follow the economic system and the market as an invisible hand, that comes from the producers and he consumers interact indirectly and directly
  • As the consumer and producers engage in commercial production thus the idea of a free-market took place. The government interferes with the services where unwanted shortages and the surplus tends to occur.
  • The free markets to regulate themselves by means of competition, among the workers and the borrowers.
8 0
3 years ago
In the short run, a monopolistically competitive firm continues to increase production _____ if it can at least cover its variab
tankabanditka [31]

Answer:

Until Marginal Revenue = Marginal Cost

​

Explanation:

In the short run, a monopolistic ally competitive firm continues to increase production until MR = MC if it can at least cover its variable cost. This is the profit maximizing condition. If firm is able to cover his variable costs in short run, he should continue production.

8 0
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A book on how to invest in collectibles spends several weeks on best seller lists. The paperback book was originally released fo
miskamm [114]

Answer:

inelastic demand

Explanation:

Price elasticity of demand (PED) measures the proportional change in quantity demanded when the price of a product or service changes:

  • when a 1% decrease in price, increases quantity demanded in a smaller proportion, the PED is said to be inelastic.
  • when a 1% decrease in price, increases quantity demanded in a larger proportion, the PED is said to be elastic.
  • when a 1% decrease in price, increases quantity demanded in the same proportion, the PED is said to be unit elastic.

In this case, the decrease in price (-2%) barely increased the quantity demanded, therefore, the PED is inelastic.

4 0
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Allegience Insurance Company’s management is considering an advertising program that would require an initial expenditure of $16
nalin [4]

Answer:

a. Pay back period is 4 years and 18 days

b. Net present value is - $5,909. Since the NPV is negative, the project should be rejected.

Explanation:

Note: See the attached for the calculation tables of a and b.

a. Pay back period = 4 years and [($2,565/$51,244)*365 days] = 4 years and 18 days approximately.

Download xlsx
3 0
3 years ago
Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statem
yarga [219]
The correct answer is C
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