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ra1l [238]
3 years ago
13

Josh pays $3,000 for a Treasury Inflation-Protected Security that has an annual interest rate of three percent. By the end of th

e first year that he owns the bond, consumer prices have increased by 10 percent. After this adjustment, how much interest is he paid per year?
Business
1 answer:
Marina CMI [18]3 years ago
4 0

Answer:

$99

Explanation:

Treasury inflated protected security is defined as type of security issued by the government that is indexed for inflation. This reduces the risk to investors as a result of reduced purchasing power from inflation.

In this scenario Josh is paying $3,000 for a treasury inflation-protected security.

If the value of Josh's bond increases by 10% as a result of increase in consumer price, we will calculate the new bind price

New bond value= 1.10 * 3,000= $3,300

The interest paid by Jos is 3%

New interest= 0.03 * 3,300= $99

So Josh will now pay $99 as interest

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The current exchange rate is 0.93 euros per dollar, but you believe the dollar will decline to 0.85 euros per dollar. If a euro-
Oduvanchick [21]

Answer:

The return you expect in U.S. dollars is 1.116%

Explanation:

0.85 = 0.93 ( 1+0.02/1+X)

0.85/0.93 = 1.02/X

0.913978 = 1.02/X

X = 1.02/0.913978

   = 1.116%

Therefore, The return you expect in U.S. dollars is 1.116%

5 0
4 years ago
The form of resource (input) substitution where one input can be exactly substituted for another in production is known as: Sele
Nikitich [7]

Answer:

a) Perfect substitution

Explanation:

When two good or services can satisfy the same purpose, and their prices are closely matched then they are called perfect substitutes. Example.

3 0
3 years ago
Read 2 more answers
Purchasers of theatre tickets receive a 20 percent discount if they purchase and pay for the full season at one time. This is an
Anni [7]

Answer:

Is the mixed bundling type.

Explanation:

In marketing, product bundling is offering several products or services for sale as one combined product or service package. It is a common feature in many imperfectly competitive product and service markets.

Mixed bundling occurs when consumers are offered a choice between purchasing the entire bundle or one of the separate parts of the bundle.

6 0
3 years ago
Budgeting supports the planning process by encouraging all of the following activities except a. requiring all organizational un
solong [7]

Answer:

The correct answer is option d. directing and coordinating operations during the period.

Explanation:

Budget is a plan which elaborates how the resources of the company are to be spent to achieve desired targets or growth rates.

It helps all the units of the organization to establish goal for the coming period.

It is also helpful for the managers and employees by increasing their motivation as they now have to chase a decided target.

It also helps in estimating cost reduction techniques, alternatives on the basis of last year data.

Since, it is just an estimate it does not provide any help in directing and coordinating operations.

So, the correct answer is <u>option D.</u>

8 0
3 years ago
You work as a financial consultant for a major national company. One of your clients, Kay, comes in to talk to you about a new i
PolarNik [594]

Answer:

Under government bankruptcy laws of the United States, anybody can declare financial insolvency in order to look for help from leasers. In any case, this comes to the detriment of harming one's financial assessments for quite a while (now and then upto a multi year time span) alongside bringing about critical lawful,, procedural and court charges.  

That being stated, liquidations are significantly troublesome procedures essentially in light of the fact that loan bosses would not need any account holder to take the easy way off in the event that the indebted person wouldn't like to restitution. This is considerably progressively evident if there should be an occurrence of understudy advances where the borrower (Kay for this situation) needs to demonstrate without sensible uncertainty that he/she would confront "undue hardship" in the event that he/she were to continue with credit reimbursements. The "undue hardship" demonstrating part is available to an assortment of understandings, rounds of questioning and lawful examination by the courtroom. Most courts use the "Brunner Test" to decide an indebted person's qualification for understudy advance release. The key arrangements of the test are set somewhere around the United States Department of Education's, Federal Student Aid Office as given beneath:  

(a) The account holder, in view of his/her present pay and costs, can't keep up a better than average "insignificant" way of life for himself/herself and his/her wards in the event that he/she were to proceed with the advance reimbursements.  

(b) Additional conditions demonstrate certain the way that this condition will prevail for a larger part of the residency of the advance reimbursement.  

(c) The borrower has taken a stab at reimbursing his/her understudy advance in accordance with some basic honesty up until this point.  

In this specific situation, Kay would be in an ideal situation in attempting to get the advance deferred, on the off chance that she declares financial insolvency post changing her activity. This is so on the grounds that her present place of employment pays enough to reimburse her understudy advance and consequently don't meet two of the three Brunner Test models. Exchanging over to the non benefit employment would compromise her present way of life (and most likely that of her wards) and adjusts to the fundamental soul of the "Brunner Test". It would off base be upto her legitimate insight to demonstrate this danger (post work change) to her expectation for everyday comforts before the court and addition an understudy advance waiver.

7 0
3 years ago
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