Answer:
4.95%
Explanation:
For computing the yield to maturity when expressed in real terms, first we have to find out the yield to maturity by applying the RATE formula that is shown in the attachment
Given that,
Present value = $989.40
Future value or Face value = $1,000
PMT = 1,000 × 7% ÷ 2 = $35
NPER = 10 years × 2 = 20 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the yield to maturity is 7.15%
Now in real terms, it would be
= 7.15% - 2.2%
= 4.95%
Answer:

And we can solve for y and we got:

And using condition (1) we can solve for x and we got:

So then the minimum cost for this case would be:

Explanation:
For this case the graph attached illustrate the problem for this case
We know that the total area is 60000, so then we have:

If we solve for x we got:
(1)
Now we can define the cost function like this:


We can use the condition (1) and if we replace in the cost function we have:

Since we need to minimize the cost, we can derivate the function in terms of y and we got:

And we can solve for y and we got:

And using condition (1) we can solve for x and we got:

So then the minimum cost for this case would be:

Answer:
The best recommendation to be made to this client is to do nothing.
Explanation:
Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.
From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.
Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.
There are four types of businesses organisation. Sole trader is owned by one person and he makes all the decisions, and earns profit and bears the loss himself. A partnership is owned by 2 or more people and they help each other. The profit and loss is divided between them.