Answer: D. I, II, and III.
Explanation:
The demand for investment funds determines the demand for loanable funds and when this is higher than the supply, the rate increases. The reverse it true. It therefore affects real interest rates.
The savings of households and business firms are the source of loanable funds so if these are high relative to demand, the rate will decrease. The reverse is true.
Government demand for funds will increase interest rates as the supply will decrease when the government borrows massively. The reverse is true.
All three therefore impart real interest rates.
True. <span>You will undoubtedly find yourself in numerous leadership situations during your professional career. Leaders can come about within many situations depending on what situation stands out to them and meets their needs/background. During your professional career, you could lead or be lead depending on the project or situation you are in. Different people lead best in large groups, while others in small. All leaders are different and you can </span>develop these skills overtime.
Answer:internet businesses are often called Ecommerce businesses
Explanation:
Answer and Explanation:
The computation of the effective interest rate is shown below:
For Fidelity bank
= (2 × 4 × $150,000 × 0.12) ÷ (4 +1 )× ($150,000 - $18,000 - ($150,000 × 26%)
= 30.97%
For southwest bank
= (2 × 12 × $150,000 × 0.12) ÷ (12+1 )× ($150,000 - ($150,000 × 13%)
= 25.46%
Answer:
Market value at 8% YTM $ 743.2156
at 10% YTM $ 619.6960
Explanation:
Assuming the face value is 1,000 as common outstanding American company's bonds:
Market value under the current scenario:
<u>Present value of the coupon payment:</u>
<u />
Coupon: $1,000 x 5% = 50
time 15 years
rate 0.08
PV $427.9739
<u>Present Value of the Maturity</u>
<u />
Maturity 1,000.00
time 15.00
rate 0.08
PV 315.24
PV c $427.9739
PV m $315.2417
Total $743.2156
If the interest rate in the market increaseby 2% then investor will only trade the bonds to get a yield 2% higher that is 10% so we recalculate the new price:
C 50.000
time 15
rate 0.1
PV $380.3040
Maturity 1,000.00
time 15.00
rate 0.1
PV 239.39
PV c $380.3040
PV m $239.3920
Total $619.6960
Giving a lower price than before