Answer:
The correct answer is 2.5%
Explanation:
The rate of inflation is always factored in when calculating the expected market interest for a year.
From the example, the expected real rate of return/interest rate = 2.0 percent
Factoring in an expected 0.5% inflation rate,
= 2.0 + 0.5 = 2.5%
The expected market interest rate for a one-year U.S. Treasury Security = 2.5%
3.11% is the yield on a 10-year zero-coupon bond with a par value of $1,000 if it is purchased for $490.
<h3>What is
zero-coupon bond?</h3>
Bonds with zero coupons do not accrue interest during their entire lifespan. Rather, buyers of zero coupon bonds pay a significant discount over the bond's face value, which is the sum they will be paid when the bond "matures" or becomes due.
Bonds with no coupon typically have lengthy maturity dates; many take ten, fifteen, or even more years to reach their final maturity. These lengthy maturity dates enable a shareholder to budget for a long-term objective, like paying for a child's college tuition. A small amount of money that will grow over many years can be put up by an investor with the deep discount.
Zero coupon bonds of various types, issued by a variety of issuers, are available for purchase by investors in the secondary markets.
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Answer:
a.act of buyers and sellers freely and willingly engaging in market transactions- voluntary exchange
B) driving force that encourages people and organizations to improve their material well-being-- profit motive
C) organized way in which a society provides for the wants and needs of its people- economic system
D) extent to which individuals or organizations are better off at the end of an economic exchange than before the exchange-- profit
E) economic system in which people carry on their economic affairs freely but are subject to some government intervention- mixed economy
F) privilege that entitles people to own their possessions--private property rights
G) market economy in which private citizens own the factors of production--capitalism
H) federal program of disability and retirement benefits that covers most working people-- social security
I) economy in which a central authority makes most of the WHAT, HOW, and FOR WHOM decisions-- command economy
J) income that does not increase even if prices go up--fixed income
Answer:
Marginal Cost = $19
Marginal Profit = $6
Explanation:
Break even quantity =
80 =
Contribution = = 6 per unit
Contribution = Sales - Variable cost = $25 - VC = $6
$25 - $6 = VC = $19
Marginal cost is cost incurred for every additional unit produced, i.e. variable cost = $19, as fixed cost remains constant.
Marginal revenue is additional revenue on sale of every unit = contribution per unit = $6
Marginal cost = $19
Marginal Profit = $6