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seropon [69]
3 years ago
7

A 2-year bond with par value $1,000 making annual coupon payments of $106 is priced at $1,000. a. What is the yield to maturity

of the bond? (Round your answer to 1 decimal place.) b. What will be the realized compound yield to maturity if the 1-year interest rate next year turns out to be (i) 10%, (ii) 12%, (iii) 14%? (Round your answers to 2 decimal places.)
Business
1 answer:
shutvik [7]3 years ago
8 0

Answer:

Explanation:

Face value = 1000

market price = 1000

annual yield = 106

yield to maturity = (106/1000) x 100

= 10.6 % .

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Answer:

By increasing the amount of money in the economy, the central bank encourages private consumption. Increasing the money supply also decreases the interest rate, which encourages lending and investment. The increase in consumption and investment leads to a higher aggregate demand.

Explanation:

It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to growing the economy, the agents will anticipate future prices to be higher than they would be otherwise. The private agents will then adjust their long-term plans accordingly, such as by taking out loans to invest in their business. But if the agents believe that the central bank’s actions are short-term, they will not alter their actions and the effect of the expansionary policy will be minimized.

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The name for minimum energy expended to keep a resting, awake body alive is _______________. This represents about 60% to 70% of
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Learn more about basal metabolic rate (BMR) here: brainly.com/question/27976523

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4 0
1 year ago
Which of the following is one result of international trade?
Reika [66]

The answer is <u>"D. Trade creates new markets".</u>


International trade is the trading of products and enterprises between nations. This sort of exchange offers ascend to a world economy, in which costs, or free market activity, influence and are influenced by worldwide occasions.  

International trade enables us to grow our business sectors for the two merchandise and enterprises that generally might not have been accessible to us. It is the motivation behind why you can pick between a Japanese, German or American vehicle. Because of universal exchange, the market contains more noteworthy challenge and in this way progressively aggressive costs, which conveys a less expensive item home to the buyer.

8 0
3 years ago
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What purpose do the three original documents that are required to receive a social security card and number serve?
avanturin [10]

You need to show multiple documents are used to verify your identity.

8 0
3 years ago
Ryan exchanged a car that he used in his business for the past 3 years for a new truck with a FMV of $25,000. This transaction t
alexandr1967 [171]

Answer:

The gain on the transaction is $5,500

Explanation:

Gain on Transaction = Fair Value of Truck - Cash Paid - Note Payable - carrying value of car exchanged

= $25,000 - $4,000 - $10,000 - ( $8,000 - $2,500)  

= $25,000 - $4,000 - $10,000 - $5,500

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3 0
3 years ago
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