Answer:
12.39%
Explanation:
in order to determine the realized rate of return we need to calculate the yield to call:
YTC formula = {coupon + [(call price - market price)/n]} / [(call price + market price)/2]
YTC = {$120 + [($1,080 - $1,000)/9]} / [($1,080 + $1,000)/2]
YTC = $128.89 / $1,040 = 0.1239 = 12.39%
In this case, the investor's realized rate of return was actually higher than the expected yield to maturity (YTM = 12% since bonds were sold at face value).
Answer:
The answer is option A) In the short-run the effects of the housing and financial crises raise both inflation and the unemployment rate.
Explanation:
Deregulation in the financial industry was the primary cause of the 2008 financial crash and an increase in world prices of oil and foodstuffs were affecting the economy.
The financial crisis permitted banks to engage in hedge fund trading with derivatives and when the values of the derivatives crumbled, banks stopped lending to each other.
It allowed speculation on derivatives backed by cheap and improper issuance of mortgages, available to even those with questionable creditworthiness.
In the short-run the effects of the housing and financial crises of 2008 raised both inflation and the unemployment rate.
Increase in price due to increase of demand. But that doesn't seem to be an option so I would go with the last option.
Answer:
d. depository institutions
Explanation:
Depository institutions include institutions such as banks, savings associations, and credit unions. They encourage money savings.They are usually insured on a federal level.
When customers save their money with this institutions, the institutions use the money to provide loan facilities to people.
