I believe the answer is b.
Answer: Financial institutions
Explanation: Financial institutions, sometimes referred to as banking institutions works as a intermediary in financial markets. These institutions offers deposit facilities to general public in exchange of interest on such deposits. Then these institutions lend the deposited amounts to those in need for investments and funds and charge interest to them.
Thus, we can conclude that option A is correct.
Answer:
17%
Explanation:
Market price of a bond is the total sum of discounted coupon payment plus par value at maturity. This is a 10-year bond with semi-annual payment so there will be 20 coupon payment in total. Let formulate the bond price as below:
Bond price = [(Coupon rate/2) x Par]/(1 + YTM/2) + [(Coupon rate/2) x Par]/(1 + YTM/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + YTM/2)^20
Putting all the number together, we have
1,158.91 = [(Coupon rate/2) x 1000]/(1 + 7%) + [(Coupon rate/2) x 1000]/(1 + 7%)^2 + ... + [(Coupon rate/2) x 1000 + 1000]/(1 + 7%)^20
Solve the equation, we have Coupon rate = 17%
The answer is Credit references. A credit reference is a data, the name of an individual, or the name of an association that can give insights around a person's past reputation with credit. FICO score offices give credit references to organizations while credit authorities give credit references to people.
