Answer:
Mr Crane's total return on the bond investment was 5.35%
Explanation:
The return on a bond is also known as it yield to maturity (YTM). In order to find a bonds YTM we need to know its present value, future value, coupon payments and number of years. In this case the bond's present value is 1,055 because it was bought at this price, it's future value is 980 because it was sold for 980, its number of years was 5 as it was held for 5 years and its coupon payment was (0.07*1000)=70. Now in order to compute return or ytm we need to put all these values in a financial calculator and compute I
PV= -1055
FV= 980
PMT= 70
N=5
Compute I=5.35
The return on the bond investment was 5.35%
Answer:
B sell some
Explanation:
in a scenario where it is dropping, it doesn't mean it won't come back up. So you would sell some but keep a few so if it went up you still make profit
Options for this question include:
a. Tripled
b. Remained the same
c. Doubled
d. Declined
___________________________________________________________
World trade has been on the rise in the past decade and as a result, the dollar value of world trade has c. Doubled.
Thanks to more integration, less restrictive government policy, a rise in population and standards of living, world trade has increase over the past couple of decades such that:
- Trade in goods has risen from $10 trillion in 2005 to $18.8 trillion in 2019
- Trade in services has risen from $2.5 trillion in 2005 to $6 trillion in 2019
When looking at the trade of goods, one can see that trade has almost doubled and in the case of services, close to triple.
We can therefore conclude that world trade has doubled in the past decade.
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Answer:
True
Explanation:
International trade is trade across national boundaries and it includes the import and export of goods and services. An economic prosperity is synonymous with rising incomes and it would increase the propensity to import; that is, people in the domestic economy now have more incomes to spend on imports. Alternatively, a recession would lead to a fall in incomes and imports, and also a fall in investment which conseqeuntly reduces exports volumes.
Trade restrictions (protectionism) such as tariffs, quotas, competitive devaluation, administrative complexities, export subsidy hinder free trade and they could reduce the volume of imports into a country. This is because trade restrictions would make imports to be more expensive; the aim might be that the government is trying to correct a current account deficit. However, the effectiveness of trade restrictions in reducing import volumes and influening export is dependent on the price elasiticty of demand for imports and exports, the quality of a country's good or service, and how the country's rate of inflation compares with that of other countries.
Answer:
Company B (transaction d)
Explanation:
present value of transaction a (company D) = $1,100,000 / 1.08 = $1,018,519
present value of transaction b (company C) = $45,000 x 21.21211 (PV annuity factor, 2.4%, 30 periods) = $954,545
present value of transaction c (company A) = $1,000,000
present value of transaction d (company B) = $100,000 x 10.52141 (PV annuity factor, 4.8%, 150 periods) = $1,052,141
