Other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar (A) appreciates and buys more Mexican goods.
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What is the exchange rate?</h3>
- An exchange rate is a rate at which one currency is exchanged for another in finance.
- Currencies are most typically national currencies, although they can also be sub-national, as in Hong Kong, or supra-national, as in the euro.
- The value of one country's currency in respect to another currency is also referred to as the exchange rate.
- Other things remain constant, if the exchange rate increases from 20 pesos to 30 pesos, the dollar appreciates and buys more Mexican items.
Therefore, other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar (A) appreciates and buys more Mexican goods.
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The correct question is given below:
Other things are the same, if the exchange rate changes from 20 pesos per dollar to 30 pesos per dollar, then the dollar ________.
The group of answer choices
(A) appreciates and buys more Mexican goods.
(B) appreciates and buys fewer Mexican goods.
(C) depreciates and buys more Mexican goods.
(D) depreciates and buys fewer Mexican goods.
Answer:
Market price of Bond = $4603.116669 rounded off to $4603.12
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 5000 * 0.0363 * 1/2 = $90.75
Total periods (n)= 23 * 2 = 46
r = 4.17% * 1/2 = 2.085% or 0.02085
The formula to calculate the price of the bonds today is attached.
Bond Price = 90.75 * [( 1 - (1+0.02085)^-46) / 0.02085] + 5000 / (1+0.02085)^46
Bond Price = $4603.116669 rounded off to $4603.12
Answer:
- True
- False
- True
- True
Explanation:
When an economy has a strong balance sheet and a declining budget deficit, it means that there is less need to borrow from the market which would keep rates lower.
When the economy is weakening, the Fed will try to stimulate it by engaging in actions that weaken short term interest rates so that people and businesses can borrow at lower cost and invest or buy goods and services.
When investors are worried about the riskiness of other financial assets, they usually come to safer assets like U.S. Treasury bonds so that they do not lose money and this is what happened in the credit crisis of 2008. More demand for the bonds led to a rise in their price.
The advent of the Internet has made the presence of businesses global. ... The communication between customers and businesses increases customer satisfaction and enables businesses to get connected to the customers. The accessibility enables businesses to further expand their service or product, which increases profit.
