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Goryan [66]
3 years ago
15

How does the Federal Funds Rate affect consumers looking to take out a loan?

Business
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

The federal funds rate is the rate at which banks borrow money overnight. When the Fed wants to stimulate the economy, it will lower the short-term funds borrowing rate. In response, banks typically lower the interest rates they charge to consumers for a variety of loans.

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Sunset Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The yield to maturity is 5.1 per
borishaifa [10]

Answer:

$2,189.76

Explanation:

<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>

<em>The price of the bond can be calculated as follows:</em>

<em>Step 1</em>

<em>PV of interest payment</em>

Interest payment =( 5.94%× $2000)/2

= $59.4

Semi annual yield = 5.1/2 = 2.6%

PV of interest payment

= 59.4× (1-(1.026)^(-20×2))/0.026)

= 59.4 × 24.41400537

=<em>$ 1,450.19</em>

Step 2

<em>PV of  redemption value</em>

=  2,000 × (1+0.051)^(-20)

= 2,000 × 0.369781925

=   739.56

Step 3

<em>Price of bond  </em>

= $1,450.19 + $739.56  

=$2,189.76

6 0
3 years ago
ABC, Inc. a contracting business has purchased a truck costing $50,000 with a depreciable life of 5 years. Using
k0ka [10]

Answer:

it would increase

Explanation:

you pay to pay for gas and oil

8 0
3 years ago
When might a company be criticized for its lack of corporate social responsibility? A. After cutting wages and benefits in order
gayaneshka [121]

A. After cutting wages and benefits in order to increase profit

Explanation:

As a company that exists in an environment, it has a responsibility to socially responsible for its actions that affect its environment including individuals(employees)

The employees are part of the social environment, so cutting their wages and benefits does not make the company socially responsible.

#learnwithbrainly

3 0
3 years ago
During the period 1990–1998 there were 46 atlantic hurricanes, of which 19 struck the united states. during the period 1999–2006
Gelneren [198K]

Answer:

Option C is correct.

Explanation:

7 0
2 years ago
You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. If the account earns 4%
Mkey [24]

Answer:

The account balance by the end of year 3 will be : $5,283.2

Explanation:

You are planning to deposit $2,000 into an account at the end of year 1 and $3,000 at the end of year 2. The account earns 4% interest.

The account balance at the end of year 1 = $2,000

The account balance at the end of year 2 = $2,000 x (1+4%) + $3,000 = $2,080 + $3,000 = $5,080

The account balance at the end of year 3 = $5,080 x (1+4%) = $5,283.2

7 0
3 years ago
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