Answer:
I used an excel spreadsheet since there is not enough room here.
Explanation:
<u>Answer: </u>Higher spending than taxing results in a deficit, which contributes to more debt.
<u>Explanation:</u>
Here the red bar is referred to the debt and the blue bar is referred to the spending. When the government spending is more it decreases the government revenue and creates a deficit in the funds. When there is deficit it means the government borrows funds for spending which increases the debts.
Government spending to improve the status of the economy in the country. It Invests is various activities for growth and development purpose. Only on collecting high taxes the revenue of the government will increase. When taxes collected are low the government revenue is also low.
Answer:
The correct answer is character
Answer:
c. $326,948
Explanation:
we must determine the market price of the bonds:
market price = PV of face value + PV of coupons
- PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49
- PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) = $80,843.40
total market price = $326,947.89 ≈ $326,948
since the market rate is lower than the coupon rate, the bonds should be sold at a premium.
