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Nimfa-mama [501]
3 years ago
13

An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loa

n Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:
A par

B par plus a mark-up

C discount

D discount plus a mark-up
Business
1 answer:
sukhopar [10]3 years ago
6 0

Answer:

A par

Explanation:

In order to close the housing gap, the Federal Home Loan Bank (FHLM) takes all necessary steps to ensure funds are available for home mortgages and construction of residential houses issues Federal Home Loan Bonds (FHLB) also called called agency bonds, The bonds are sold by financial institutions, the income from FHLB are only subjected to federal tax but  exempted from state and local income-tax.

New bonds are said to be issued in the primary market in which case it is issued at par. But when traded in the secondary market, that is, when someone wants to resell, it may be sold at a lower or higher price, this is because of fluctuation in interest rate.

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Following his high school graduation, Brandon buys a new laptop for $1,500 through BestSpend's payment program which requires no
Fofino [41]

Answer:

C) 18.2 months

Explanation:

If Brandon had paid only $40 per month with such a high APR, it would have taken him almost 74 months to pay for the computer. But since he paid $100 per month, then he will need to pay for only 18.2 months.

A 25% APR represents over $362 in interests during the first year, while his total payments would have been only $480. That is why it would have taken so long to pay the debt. By paying 2.5 times more money, the total time needed to pay the debt is only one fourth of the established schedule.

3 0
3 years ago
You consider buying a share of stock at a price of $24. The stock is expected to pay a dividend of $1.32 next year, and your adv
Blababa [14]

Answer:

2%

Explanation:

Actual return = [(Dividend + Capital gain) / Purchase price] * 100

= [($1.32 + $27 - $24) / $24] * 100

= 18%

Expected return = rf + Beta*(E(rm) - rf)

= 10% + 0.6*(20% - 10%)

= 16%

Abnormal return = Actual return - Expected return

Abnormal return = 18% - 16%

Abnormal return = 2%

5 0
3 years ago
C Qu. 21 Sea Island Company is trying to decide which... Sea Island Company is trying to decide which one of two alternatives it
Nataliya [291]

Answer:

The differential revenue for this decision is $95000

Explanation:

Differential Revenue: In differential revenue it shows a difference between two projects revenues. Irrespective of whatever information is given in the question.

It is computed to check that how much increment or decrements is done as compare to previous year, or between projects.

So,

Differential revenue = Alternative B Projected Revenue - Alternative A Projected Revenue

= $310,000 - $215,000

= $95,000

Hence, the differential revenue for this decision is $95000

3 0
3 years ago
In September 2000 the Pullman Group arranged a bond issue for the estate of the late Marvin Gaye. The collateral on the bonds (a
nata0808 [166]

Answer:

The bond will sell for the amount of $869.17

Explanation:

According to the given data coupon amount = 50/2 = 25

Therefore, in order to calculate the selling price of the bond we would have to make the following calculation:

selling price of the bond = 25 * PVIFA(3%,52) + 1,000 * PVIF(3%,52)

selling price of the bond= 25 * 26.1662 + 1,000 * 0.2150

 selling price of the bond= $869.17

The bond will sell for the amount of $869.17

6 0
4 years ago
Note that common work styles are listed toward the top, and less common work styles are listed toward the bottom.
AURORKA [14]

Answer:

leadership

dependability

analytical thinking

Initiative

Self control

Explanation: These are the common needed work styles by Nursery and Greenhouse managers currently.

3 0
3 years ago
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