Answer: 9.04%
Explanation:
1 year rate today = 5% = 0.05
2 years rate today = 7% = 0.07
Maturity of longer bond = 2
The ending return if the 2 years bond are bought will be thesame as the needed return on series of a year bond which will be 1.1449
The market's forecast for 1-year rates 1 year from now will be calculated as:
= 1.05(1+X) = 1.1449
1.05 + 1.05X = 1.1449
1.05X = 1.1449 - 1.05
1.05X = 0.0949
X = 0.0949/1.05
X = 0.090381
X = 9.04%
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
Answer and Explanation:
The Journal entry is shown below:-
March 17
Stock Dividend Dr, $84,750 (113,000 × 5% × $15)
To Common Stock Dividend Distributable $56,500 (113000 × 5% × $10)
To Paid in capital in excess of Par - Common Stock $28,250
(Being stock dividend is recorded)
Here we debited the stock dividend and we credited the Common Stock Dividend Distributable and Paid in capital in excess of Par - Common Stock
Answer:The correct option is 'd': The interest rate.
Explanation:
According to Liquidity preference theory money is considered as 'liquid' meaning that liquidity preference is the demand for money.
According to this theory if our investments are more liquid then we ought to cash in for full value as cash is often accepted as most liquid asset.
Thus the liquidity of cash can be controlled by adjusting the interest rates as equilibrium in the money markets is achieved when the demand equals the supply.
Huh?? What are you taking abouttttt LOL