Answer:
Equilibrium is the point of the interaction between the demand and supply curves.
The given graph given from the question is attached below (Image 1-2)
The solution is attached in image 3-4
The bond market requires a return of 7.5 percent on the 3-year bonds issued by Beck Co. The 7.5 percent is referred to as the: A
1 answer:
Answer:
The correct answer is letter "D": yield to maturity.
Explanation:
Yield to Maturity or YTM refers to the required market interest rate bonds posses. YTM represents the anticipated return investors could obtain in case they hold the bond until maturity. YTM is expressed as an annual rate and it is calculated using the following formula:
where:
- n = <em>number of years to maturity</em>
- Face Value = <em>maturity value of the bond</em>
- Current Price = <em>price of the bond today</em>
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Answer:
e. $82,854
Explanation:
Assuming compounding occurs only once a year, the future value of a $39,500 investment for 30 years at a rate of 2.50% per year is determined by:
At the end of 30 years, Brandon will have $82,854.
The answer is alternative e. $82,854