The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
1 answer:
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Answer:
$8,181.81
Explanation:
Data provided in the question:
Amount deposited in the checking account = $1,800
Required reserve ratio = 0.220
Now,
Change in the checking deposits is calculated as:
⇒ ( Amount deposited ) × ( Money multiplier )
also,
Money multiplier =
or
⇒ Money multiplier =
or
⇒ Money multiplier = 4.54
Therefore,
Change in money supply = $1,800 × 4.54
or
⇒ Change in money supply = $8,181.81
Answer:
YTM = 8%
Explanation:
$100 per year up to 4 years means, each year, the FV = $100.
We know, Zero coupon bond = [Fair Value ÷ ]
As the 4-year annuity paying the different YTM in the previous three years, 4th year YTM will be -
Bond value = +
+
+
or, $334.57 = $94.3396 + $87.3439 + $79.3832 +
or, $334.57 - 261.0667 =
or, = ($100 ÷ $73.50)
or, 1 + YTM =
or, YTM = 1.08 - 1
YTM = 0.08 or 8%