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elena-14-01-66 [18.8K]
3 years ago
11

Which of the following is true?

Business
1 answer:
pentagon [3]3 years ago
3 0

Answer:

c.Rents occur at the beginning of each period of an annuity due.

Explanation:

First, know the difference between Ordinary annuity and Annuity due.

In Ordinary annuity, recurring payments occur at the end of the payment period; for example at the end of every month, end of ever year , end of every quarter etc.

On the other hand, in the case of Annuity due, the recurring payments occur at the beginning of the period like at the beginning of the month, beginning of the year;Jan 1st, or beginning of every quarter

In the case of rent, tenants pay rent at the beginning of each month making this type of payment an Annuity Due.

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Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4
Mademuasel [1]

Answer:

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security?

The nominal interest rate = 8.86%.

Explanation:

Average inflation premium = (4%+5%+4.5%+4.5%+4.5%+4.5%+4.5%)/7 = 31.5%/7 = 4.50%

Maturity risk premium for 7 year bond = 0.0006 * (7-1) = 0.36%

Nominal interest rate = real risk free rate + inflation premium + maturity risk premium = 4% + 4.50% + 0.36% = 8.86%.

Therefore, the nominal interest rate for the question given = 8.86%.

4 0
4 years ago
Suppose that the equilibrium price of greeting cards declined at the same time the equilibrium quantity of greeting cards increa
lorasvet [3.4K]

Answer:

The answer is: A) A decrease in the price of paper used to make greeting cards.

Explanation:

In normal market conditions, an increase in the equilibrium quantity of greeting cards means that the quantity demanded and the quantity supplied of greetings cards increased. Usually an increase in the quantity supplied will result in an increase of the price of the good or service. But on this specific case something else made the price of the cards decrease. The only one of the four possible options that can explain an external cause for a decrease in the price of greetings cards, is a decrease in the price of paper used to manufacture them.  

3 0
3 years ago
Under SEC rule 606 of regulation NMS, broker-dealers are required to compile statistical information on routing of customer non-
Anna007 [38]

Options:

A. monthly

B. quarterly

C. semi-annually

D. annually

Answer:B. Quarterly

Explanation:SEC(security and exchange commission) is an agency established by Government to regulate the activities of companies that sale Securities,Stock markets and self-regulatory Organisations.

Security and exchange commission ensures that it puts guidelines and rules to ensure that market players do business according to the best practices devoid of criminal activities.

Security and exchange commission rule 606 of regulation NMS, broker-dealers are required to give QUARTERLY REPORT AVAILABLE TO CUSTOMERS BY COMPILING STATISTICAL INFORMATION ON ROUTING OF CUSTOMER NON-DIRECTED ORDERS TO MARKET VENUES, AND MAKE THIS INFORMATION AVAILABLE TO CUSTOMERS.

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You have to make a college choice by the end of the month, and you have been accepted by three schools. your parents want you to
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4 years ago
Which of the following conditions may or will cause firms to exit an industry?
Ahat [919]

Answer:

If price is less than minimum average variable cost, resulting losses will cause firms to leave the industry.

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