Answer:B. On acellus or edgeunity it’s b…
Explanation:
Answer:
$1040.56
Explanation:
A bond is debt instrument issued by a borrower which promises to pay the holder regular interest for the holding period and the terminal value at the end of the period.
According to the discounted cash flow model, the value of an asset is the present value of the future cash flows arising from the assets discounted at the required rate of return.
Present value is the worth today of an amount expected in the future.The process of calculating the present value is called discounting
To calculate the price of this bond, we shall discount the future cash flows using the required return of 8% per annum, which is the same as 4% per six-month
Interest payment per 6 month = (9% × $1000)/2= $45
PV of interest payment = 45 × (1- (1.04)^(-2×5))/0.04)= 364.995
PV of redemption value = 1000 × 1.04^(-2× 5) = <u>675.56</u>
Price of the bond 1<u>040.56</u>
Answer:
B) (I) is false, (II) true.
Explanation:
The interest rate of longer-term securities is usually higher than the interest rate of short-term securities because more risk is associated with the longer-term securities. An example of the risks associated with long-term securities is that it possible for inflation to make value of the payment to fall. Another risk is when there is a rise in the interest rate which usually lead to a fall in the bond prices.
Treasury STRIPS refers to bonds that are offered for sale at a discount to their face value. Their major attribute is that they do not pay interest to investors but the full face value of the bonds is paid to the investor when the bonds mature. This means the bonds mature at par.
The full meaning of STRIPS is Separate Trading of Registered Interest and Principal of Securities, and they are types of bonds that are commonly referred to as zero-coupon bonds because no interest or coupon is paid by them.
From the above, we can see that (B) is the correct option in the question. That is, (I) is false, (II) true.
A rightward shift in the aggregate supply curve will occur when: there is a decrease in price input.
<h3>What is a supply curve?</h3>
A supply curve is a graphical representation of how the market would behave or move in there is a change in supply. It is a representation of the relationship between the quantity supplied for a given period of time and the prices of goods and services.
A rightward shift in the short run aggregate supply curve will then occur anytime there is a decrease in the price input.
Learn more about Supply Curve here:
brainly.com/question/26430220
Answer:
B. new production processes may be devised.
Explanation:
This means, the new capital in touch with the human innovation traits will generated ways to use this capital beyond their inventors knowledge. Giving the capital additional used. Assthis uses were discovered after the capital invention, are not included in the cost of the new capital therefore, are positive externalities of their.
Also, generally the labor productivity increases with new capital not decrease.
