Answer:
The total cost of establishing the portfolio is $2054.95.
Explanation:
The present value of a bond is given as
For 1 year zero-coupon bond is
- FV is 500
- r is 7% or 0.07
- n is 1
So the value is
Similarly, for 3 years zero-coupon bond is
- FV is 2000
- r is 8% or 0.07
- n is 3
So the value is
So the total cost is
Total Cost=Cost of 1-year zero-coupon bond+Cost of 3-years zero-coupon bond
Total Cost=$ 467.29+$ 1587.66
Total Cost= $ 2054.95
So the total cost of establishing the portfolio is $2054.95.
The international monetary fund is an organization that is made up of 190 countries whose goals are to build international trade, promote economic development, and reduce poverty in the world.
The International Monetary Fund is a committee of many nations that are committed to developing the economy of their nations.
- The goal is to reduce poverty and encourage international trade among nations.
- They assist nations whose economies are struggling with loans that can help them wade through their difficult times.
Summarily, the IMF aims to reduce poverty in the world.
Learn more about IMF here:
brainly.com/question/10346932
Answer:
The correct answer is letter "D": multiple systematic risk factors.
Explanation:
The Arbitrage Pricing Theory or APT weights the influence of different macroeconomic factors on an asset return. If the asset's price is different than the model's projection an opportunistic investor can buy and sell the asset for a profit. Those macroeconomic factors can include economic output, unemployment, inflation, savings or investments-specific considerations and they capture systematic risk.
Answer:
current FLOATING EXCHANGE rate
Explanation:
Exchange rate is the rate at which one currency will be exchanged with another. For example, 1 United States Dollar is equivalent to 4.24 Poland Zloty as of March 2020.
There are two common types of exchange rates:
1. Floating exchange rate: This is set by the FOREX market, and is based on the current supply and demand of currencies. When demand for a currency is high, its value increases and vice versa.
2. Fixed exchange rate: A fixed or pegged exchange rate is whereby a government entirely determines the rate and value of the currency.
Generally, a floating exchange rate system is used in the global market. This does not mean countries allow their currencies to fluctuate endlessly. The central bank of a country and it's government does intervene and manipulate the currency to make it favorable for them during international trade but it is done in a more indirect manner as opposed to a fixed exchange rate system.
