Answer:
The current price of the bond is $913.91 as computed below
Explanation:
In order to determine the current bond price,the pv formula in excel comes handy.
The pv formula is stated as below:
=pv(rate,nper,pmt,fv)
rate is the yield to maturity on the bond which is 10.40% in this case
nper is the period to maturity of the bond which is 6 years
pmt is the annual coupon payment payable by the bond which is denoted as coupon rate* face value of the bond i.e 8.40%*$1000=$84
fv is the face value of the bond which repayable at maturity
=-pv(10.40%,6,84,1000)
=$913.91
Answer:
Option C: Buying a franchise
Explanation:
Franchise is simply defined as a business that sells or distribute a product or service that has beingdeveloped by a franchisor. It is usually in the way or manner that the franchisor listed.
The product, method of distribution, and, sales and management are governed or controlled by the franchisor of the business.
The process of purchasing that is buying of a Franchise is by looking into franchising company, contact, application, franchise contact and review, franchise agreement, negotiation terms, agreement signed and others.
The projected sales ar 52,149 units of bikes for 2012. On hand at Jan 1, 2012 are 5002 units. So 52,149-5002= 47137+6831= 53,978 bikes to make in 2012 in other words, the net production to make the 52149 is 47137 plus the desired inventory at the end of 2012 totals the 53,978.
Answer:
Money Supply - Decreases / Interest Rates - Increase
Explanation:
Open market sells are contractionary monetary policy measures that aim are reducing inflationary pressures. The Federal reserves undertake monetary policy to achieve stable prices and steady economic growth.
Open market operations involve the Fed selling treasury bills to the banks and other financial institutions. The banks are expected to pay for the treasury bills using customers. Usually, banks issue out the customer deposits to firms, and households are loans. Open market sales results in banks unable to issue out many loans as most of the customer deposits are used to pay for the treasury bills. Banks will have limited cash for loans leading to a decrease in the money supply. Demand for loans exceeds supply resulting in an increase in interest rates.
