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Alexxx [7]
3 years ago
12

Use the In the News to answer three questions

Business
1 answer:
Flauer [41]3 years ago
3 0

Answer:

2%

2.5%

1.67%

Explanation:

The yield can be computed using the yield formula which coupon payment divided by price.

The coupon payment=face value*coupon rate

face value is $1000

coupon rate is 2%

coupon payment=2%*$1000=$20

when price is $1000:

yield =$20/$1000=2%

when price is $800

yield=$20/$800=2.5%

when price is $1,200

yield =$20/$1,200=1.67%

In essence ,the lower the price the higher the yield as lower amount is invested in order to receive the same amount of annual coupon of $20

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Watts Co. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? No
Natasha_Volkova [10]

Answer:

MIRR = 15.65%

so correct option is b. 15.65%

Explanation:

solution

We will apply here formula for amount that is

A = P × (1+\frac{r}{100} )^n      ..................1

here A is future value  and P is present value  and r is rate and n is time period

so here future value of inflows will be

future value of inflows = [ 300 × (1.1)³ ] + [ 320 × (1.1)² ] + [ 340 × (1.1) ] + 360

future value of inflows = $1520.5

and MIRR will be here

MIRR = (\frac{future value of inflows}{present value of outflows})^{\frac{1}{time period}} - 1

MIRR = (\frac{1520.5}{850})^{\frac{1}{4}} - 1

MIRR = 15.65%

so correct option is b. 15.65%

7 0
3 years ago
Of the 6.25 billion people in the world, 310 million live in North America. What percent of the world's population lives in Nort
laiz [17]

Answer:

5% approx

Explanation:

Given that

Number of people in the world = 6.25 billion

And the number of people live in North America = 310 million

So, the percentage of the world population lives in North America would be

= (Number of people live in North America ÷ Number of people in the world) × 100

= (310 million ÷ 6.25 billion) × 100

= 5% approx

6 0
3 years ago
Financial instruments Financial instruments are assets that have a monetary value or record a monetary transaction. To coordinat
Ivanshal [37]

Answer:

1a. Backed by the U.S. government, these financial instruments are short-term debt obligations with a maturity of less than one year. They are considered risk-free investments.

Identification: U.S. Treasury Bills (T-bills)

b. Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regular savings account. They are low-risk instruments and have low returns.

Identification: Certificate of deposit

c. These financial instruments are investment pools that buy such short-term debt instruments as Treasury bills (T-bills), certificates of deposit (CDs), and commercial paper. They can be easily liquidated.

Identification: Money Market Mutual Fund

d. These financial instruments are contractual agreements that give one party a long-term agreement to use an asset by providing regular payments.

Identification: Lease Agreement

2. The instruments which are traded in capital markets are Common Stock,  Preferred Stock, Corporate Bonds  and Certificates of deposits excluding Long-term bank loans.

3. The process in which derivatives are used to reduce risk exposure is called <u>hedging</u>.

3 0
3 years ago
Most resources are nonrenewable, and wants and needs are limited. This is an example of?
dimulka [17.4K]

Answer:

scarcity.

Explanation:

Scarcity can be defined as an economical problem that gives the relationship between non-renewable (limited) resources and the limitless wants and needs of consumers.

Basically, it's very important that producers of goods and services make decisions that would help them on how to efficiently allocate scarce or limited resources, in order to meet the unending requirements, wants and needs of consumers.

In Economics, an example of scarcity is that most of the resources used for the manufacturing of finished goods and services are nonrenewable, and as a result, the wants and needs of the end users or consumers are limited. Thus, economists would advise that economies should decide on what to produce, how to produce, when to produce and for whom to produce due to the finite and limited nature of resources i.e the concept of scarcity.

3 0
3 years ago
In the ____________, households work and receive payment from firms. Group of answer choices financial investment market financi
slega [8]

In the Labor Market, households work and receive payment from firms.

<u>Explanation:</u>

The skills of the people will be exchanged with the employers for the salaries or wages and this is called as labor market. Any people who is in need of any platform to show their skills and the organisation that is in need of labor are the main elements of the labor system.

The important source of producing any type of goods is labor. It is the labor market that decides the compensation that is to be made to these labors. Thus, in the labor market, the households work and they will receive compensation from the firm for which they work.

6 0
3 years ago
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