Brennan would be in the toddler stage of his life
Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63
Duration of obligation is 1.4808 years.
The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.
If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.
Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)
- Cutiepatutie ☺❀❤
Answer:
(B) 16.25%
Explanation:
Using the multifactor APT,
where 
= expected return on portfolio A,
= the risk free rate of return,
= beta on factor "i"
= risk premium on factor "i".
Therefore,
return on portfolio A = 7% + (0.5 * 1%) + (1.25 * 7%)
= 0.07 + (0.5 * 0.01) + (1.25 * 0.07)
= 0.07 + 0.005 + 0.0875
= 0.1625
= 16.25%.
b. buy enough of the two goods such that the marginal utility from the last dinner consumed is four times greater than the marginal utility from the last video.
This is because they are paying 4 times as much for the dinner so should get 4 times the utility from it.
Answer:
Cashier's check.
Explanation:
These checks are said to be quaranteed and issued in the bank by the banking institute. It contains the name of the receiver receipiant which has been inscribed in the check by the banking institute or credit union attached to the receiver also with the amount of money written on it. This amount written on it is known to be the withdrawable amount.
The cashier's check can be sent out in form of a letter, fax or even a mail to the intended persons or organisation making the withdrawal.
Here, monies which are been orders are easily secured by use of a cashier’s checks.
