Answer:
A. 0.61%
Explanation:
Calculation for what your 1-year holding-period return
Based on the information given the $1,000 par value bond will be the price for the year and we should also take note that YTM also equals the coupon rate.
We are going to use calculator to find what the following year's price will be
N = 7
I/Y = 7
PMT = 60 (60%×$1,000)
FV = 1,000
CPT PV -946.11
Now let calculate how much we would have at the end of 1 year
$946.11 + $60
= $1,006.11
Last step is to calculate for what your 1-year holding-period return
Holding-period return = $1,006.11/$1,000 - 1
Holding-period return= 0.61%
Therefore your 1-year holding-period return was 0.61%
Answer:
The correct answer is option C.
Explanation:
An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.
Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.
The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.
Thirdly, storage of services is not possible, as services are consumed when offered to a customer.
Answer: Option 3.
<u>Explanation:</u>
Perishable is a feature where a good or service can not be stored for long. They might get hampered and do not remain like their original self if they are stored.
Services have a perishable nature in the sense that they can not be stored like some of the goods which can be stored. The services are to be consumed then and there at the moment when they are offered to the customers. They can not be kept reserved.
The bank must notify U.S. Treasury Department.
Hope this helps!!
