Answer:
The Price of Bond today = $997.07
Explanation:
Semi annual coupons = $1000 * 5% / 2
Semi annual coupons = $25
As 9 months is already over in the two year bond, the coupons are payable
3 months from now, 9 months from now and 15 months from now.
The present value of all these coupons and the principal should be equal to the price of the bond today. In case of continuous compounding, the formula for Present Value of any future Cash flow C is C*e^(-r*t).
Price of Bond = $25 * e^(-0.06*3/12) + 25*e^(-.061*9/12)+ 1025*e(-0.062*15/12)
Using the value of e as 2.71828
Price of Bond = $25 * 2.71828^(-0.06*3/12) + 25*2.71828^(-.061*9/12)+ 1025*2.71828(-0.062*15/12)
Price of Bond = $
25 * 2.71828 ^-0.015 + 25*2.71828^-0.04575 + 1025*2.71828^-0.0775
Price of Bond = $
25 * 1/2.71828^0.015 + 25*1/2.71828^0.04575 + 1025*1/2.71828^0.0775
Price of Bond = $997.07
Answer:
The correct answer is the option is D.
Explanation:
Contractionary policy is used to reduce economic activities. it used in case of inflation. Fiscal policy is the tool to affect the economic variables through government spending and taxation.
The most contractionary policy will be if the government spending is reduced and taxes are increased. This will lead to a reduction in disposable income. Consequently, demand will decline as well. This will further lead to a fall in the price level. Thus curbing inflationary pressures.
<span>I suppose this decision that it would be fair in some ways but not in others. Generally each individual has put in different amounts throughout there work life. To place all retirees in the same bracket would downplay the individuals that naturally put in more than others, and the total opposite effect for those who put less in. This would have a dramatic effect on retirees because a minimum work ethic would become the average.</span>
Answer: Interpersonal
Explanation:
The managerial role is he performing is interpersonal. This role requires him to act as the figurehead for the company. He must carry out both real and symbolic duties which are legal and social in nature.
He is also the Leader of all the workforce. This involves all that it is necessary to be a good leader : building a team, motivating staff, and developing strong relationships among all emplyees.
He must also act as the liaison with the stakeholders keeping them informed.
