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3 years ago

A cartel differs from a monopoly in that

1 answer:

6 0

A cartel differs from a monopoly in that B) businesses making the same product agree to limit production. A cartel is an agreement between producers of goods, usually primary products like oil or natural gas, who work together to set a price at an agreed upon price that is a distortion above of what the market's equilibrium price would be for the good without the cartel's intervention.

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What is the yield to maturity on a one-year, $1,000 Treasury bill with a current price of $900?

schepotkina [342]

Answer:

So yield to maturity will be 11.1 %

Explanation:

We have given final value FV = $1000

Current price = $900

Time is given t = 1 year

We have to find the rate of interest

Future value is given by

$A=P(1+\frac{r}{100})^n$ , here A is future value and P is current price

So $1000=900(1+\frac{r}{100})^1$

$1.111=1+0.01r$

$0.111=0.01r$

r = 11.1 %

8 0

4 years ago

Aw sh~ here we go again.....

Mamont248 [21]

Answer:

Explanation: Yessssss..

8 0

3 years ago

The FOMC has instructed the FRBNY Trading Desk to purchase $820 million in U.S. Treasury securities. The Federal Reserve has cur

Yuliya22 [10]

Answer: See explanation

Explanation:

a. . Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply?

Based on the above scenario, there'll be an increase in bank deposits and money supply by $16.4 billion.

= (1/5%) × $820 million

= (1/0.05) × $820 million

= 20 × $820 million

= 16,400,000,000

= 16.4 billion

b.What is the full effect of this purchase on bank deposits and the money supply if borrowersreturn only 95 percent of these funds to their banks in the form of transaction deposits?

This will lead to an increase in the bank deposits and money supply by $8.2 billion

= [1/(0.05+(1-0.95)] × $820 million

= [1/0.05+0.05] × $820 million

= (1/0.1) × $820 million

= 10 × $820 million

= $8.2 billion

8 0

3 years ago

The following table shows the prices of a sample of Treasury bonds, all of which have coupon rates of zero. Each bond makes a si

SVEN [57.7K]

a) The 1-year interest rate is 3.25%.

b) The 2-year interest rate is 7.12%.

c) The 3-year interest rate is 11.68%.

d) The 4-year interest rate is 16.99%.

e) The yield curve is always upward-sloping. With increased time to maturity, interest rate increases to compensate for the increased risks associated with a longer term.

f) Yes. The usual shape of the yield curve is upward-sloping because short-term securities generate lower yields than long-term debt instruments.

<h3>What is the interest rate?</h3>

The interest rate is the compensation for undertaking financial risks in view of the time value of money.

The interest rate depends on two factors, the maturity period and the implied risks involved.

The interest rate can be computed using the following yield-to-maturity formula:

YTM Formula = (100%/Price %) - 1

Years to Price (% of Interest rate =

Maturity face value) (100%/Price %) - 1

1 96.852% 3.25% (100/96.852 - 1)

2 93.351% 7.12% (100/93.351 - 1)

3 89.544% 11.68% (100/89.544 - 1)

4 85.480% 16.99% (100/85.480 - 1)

Learn more about the interest rate and yield-to-maturity at brainly.com/question/28033398

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6 0

1 year ago

What are two types of investment accounts that you might use in the future?

Vinvika [58]

Im guessing a retirement account and cd!

7 0

4 years ago