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HACTEHA [7]
3 years ago
15

Tecunltd Corporation has issued bonds that have a 9 percent coupon rate, payable semiannually. The bonds mature in 8 years, have

a face value of $1,000, and a yield to maturity of 8.5 percent. What is the price of the bonds
Business
1 answer:
kherson [118]3 years ago
4 0

Answer:

$1051.7

Explanation:

Semi-annual coupon payments = $1000 x 9% x 6/12 = $45

Using financial calculator, we have the following inputs:

PMT = $45 (semi-annual coupon payments)

n = 16 (bonds mature in 8 years, total payments is 8x2 = 16)

I/Y = 4.25    (YTM = 8.5% per annum = 4.25% semi-annually)

FV = $1045 (face value + semi-annual coupon payment = 1000+45 =1045)

PV = ? (Price of the bond)

PV = $1051.7

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What is the difference between an "increase in demand" and an "increase in quantity demanded"?
alekssr [168]

A shift to the right of the demand curve signifies a "increase in demand," whereas movement along a particular demand curve signifies a "increase in quantity demanded." The correct response is option (B).

<h3>What is increase in demand?</h3>

A rise in demand will cause a rise in the equilibrium price and an increase in supply, all other things being equal. Reduced demand will result in a decrease in the equilibrium price and an increase in supply.

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6 0
1 year ago
You run the Social Security Administration. What about this chart might worry you?
AURORKA [14]

Answer:

The amount of taxpayers that are part of the "older generation" is slowly rising and is higher than the amount in 1997.

Explanation:

Remember to run a successful government, you must have the income in which to run the government programs. Most of these funds come from taxpayer's. In this case, it is clear that younger people generally make more as well as are generally healthy, leading to a large amount of input of money into the government, with fewer withdrawals. This would give a huge boost to the government budget. Older people on the other hand tend to not work as much, so their taxes are generally lower. They also withdraw more from the Government through Social Security, and so leaves the government with a negative balance from them in most cases.

The chart on the other hand shows a <em>increase of percentage of older people</em>, which leaves a large gap in between the surplus and the spending, leading to a decrease of funding for the government. If this continues, the government would lose money, and would have to cut programs or face collapse. To fix this, they either have to, like stated above, cut programs, or give more taxes. Both are unacceptable to the American Public, which is what makes the government, as well as the average citizen, worried about the US government's funding surplus.

~

8 0
3 years ago
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Answer:

Option (D) is correct.

Explanation:

We all know that a country imposes tariffs on the imports of a commodity to restrict imports from other country.

Specific tariff is a type of tariff that will be imposed on the every unit of a commodity that will be imported in a country. It is a amount of money that a person have to pay for every unit he or she imports.

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