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Elis [28]
3 years ago
11

In November 2017, Treasury 4 1/2s of 2044 offered a semiannually compounded yield to maturity of 2.66%. Recognizing that coupons

are paid semiannually, calculate the bond's price. Assume face value is $1,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Alexxx [7]3 years ago
6 0

Answer:

The price of a bond is $492.24

Explanation:

F= face value of bond = $1000

T=time to maturity of bond = 2044-2017= 27 years

r=yield to maturity=2.66% semi-annulay=0.0266

Formula to calculate price= F/(1+r)∧T

we have = 1000/(1+.0266)∧27 = 1000/2.0315 = $492.24

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The general term used to indicate delaying the recognition of an expense already paid or of a revenue already received is
slavikrds [6]

deferral is the answer.

A deferral in accrual accounting is an account on which income or expenses are recorded at a later date. Pensions, surcharges, taxes, income, etc. Accruals and deferrals can be viewed as either assets or liabilities, depending on the type of accrual. See also boundaries.

deferral means money paid or received before the product or service is offered. Here is an example of postponement: Insurance fee. Subscription-based services (newspapers, magazines, TV shows, etc.) Prepaid rental.

deferral is a payment made in one accounting period but not reported until the next accounting period. For example, if you made a payment at the end of the year but did not report until the new year, this will be postponed.

Learn more about deferral here:brainly.com/question/16967814

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5 0
1 year ago
If the Fed increases the money supply and as a result, households and firms buy more short-term financial assets, the prices of
Ede4ka [16]

Answer:

rise, fall

Explanation:

Money supply refers to the total value of money in the form of currency and other liquid instruments available in an economy.

It includes cash, coins, and other near money substitutes.

Money supply is measured as it influences various activities taking place all around us in the economy.

A larger money supply leads to <u>fall</u> in interest rates. As a result, the prices of those short-term financial assets will <u>rises.</u> Conversely, smaller money supplies leads to rise in interest rates which in turn leads to fall in prices of the short-term financial assets.

3 0
2 years ago
you inherit $10,000 with the stipulation that you for the first year the money must be invested in two stocks paying 6% and 11%
Crank

Answer:

At 6% $3,529.412 will be invested

At 11% $6,470.588 will be invested

Explanation:

Let x be the investment for 6% stock

And (10,000-x) is the investment it 11% stock

Let I be interest earned on both investments.

Using the formula

Principal(p)= Interest(I)*Rate(r)*Time(t)

p/RT= I

So considering both investments

x/(6%*1)= (10,000-x)/(11%*1)

x/0.06= (10,000-x)/0.11

Cross-multiply

0.11x= 0.06(10,000-x)

0.11x= 600- 0.06x

Rearranging

0.11x+ 0.06x= 600

0.17x= 600

x= 600/0.17= 3,529.412 amount invested at 6%

Amount invested at 11%= 10,000-3,529.412

= 6,470.588

8 0
2 years ago
bundle of meanings or characteristics associated with certain concrete, unambiguous events, objects, conditions, or situations?
Sloan [31]

Answer:

<em>CONCEPT</em>

Explanation:

It is known as <em>"CONCEPT"</em> in which the meanings collections are been accepted and associated with characteristics with certain objects and situations and conditions and events as well as behaviors.

<em>In this it also classifies the events and as well as objects that are carrying  similar characteristics. </em>

We can also abstract such kind of meaning with are experience of abstraction.

8 0
2 years ago
Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base yea
arsen [322]

Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

5 0
2 years ago
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