To pay a higher interest rate, a lower relative stock price, and a higher cost of funds than its competitors
Answer: $152,309.69
Explanation:
You are looking for the future value of this amount in 29 years assuming it will be compounded annually.
Future value = Amount * (1 + rate)^ number of years
= 4,400 * ( 1 + 13%)²⁹
= $152,309.69
Answer:
7.29%
Explanation:
The computation of the current yield of the bond is shown below;
Current yield is
= (Par value × annual coupon rate) ÷ Selling price of the bond
= ($1,000 × 7.2%) ÷ $988.22
= $72 ÷ $988.22
= 7.29%
Hence, the bond current yield is 7.29%
This is to be computed by applying the above formula so that the current bond yield could arrive
Answer:
The correct answer is option D.
Explanation:
The money equation given by Irving fisher is popularly known as fisher's equation.
The equation is given as MV=PT
Here, M represents money supply, V is the velocity of money, P is the price level and T refers to the volume of transactions or output level.
The supply of money refers to the quantity of money in existence while the velocity of transactions shows the number of times, money changes hands. Together they show the volume of money in circulation.
P is the average price level and T represents the expenditures on all transactions or, in other words, output level.
Here, V and T are assumed to be constant. This means that the money supply directly affects the price level.
There is no explicit mention of the interest rate in this equation.
So, option D is the correct answer.
