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Agata [3.3K]
3 years ago
6

William took out a $440,000 mortgage to purchase his personal residence. The residence is worth almost $1 million, and William w

ants to take out a $200,000 second mortgage and use the proceeds to consolidate his credit card debt. William can deduct the interest he pays on both mortgages.
a. True
b. False
Business
1 answer:
vlabodo [156]3 years ago
7 0

Answer:

false

Explanation:

this is false than

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Suppose the September Eurodollar futures contract has a price of 96.4. You plan to borrow $50m for 3 months in September at LIBO
bija089 [108]

Answer:

Explanation:

Definition of simple terminologies ;

  • A contractual agreement is an agreement which is made on future exchanges in order to buy or sell goods at a fixed price at a specified time period.
  • LIBOR stands for London interbank offered rate which is the rate at which  banks borrow money from other banks in london market. this rate is a fixed term by the british bankers association.

a) The implied LIBOR of the September Eurodollar futures of 96.4 is =  100 96.4 /400-=0.9%

(b) As we want to borrow money, it implies buying protection against high interest rates, which means low Eurodollar future prices. We will short the Eurodollar contract.

c) Number of contact to be entered into = One Eurodollar contract which is based on a $1 million 3-month deposit. As such, entering into hedge a loan of $50M, will automatically implies entering into 50 short contracts.

d) A true 3-month LIBOR of 1% means an annualized position (annualized by market conventions) of 1% x 4 = 4%. Therefore, our 50 short contracts will pay: [96.4 − (100 − 4) × 100 × $25] × 50 = $50,000.

The increased interest rate has  made the loan more expensive as such, the loss to exposure  will be compensated hence we have to pay the following amount ; ($50,000,000 x 0.01) - $50,000

= $450,000

6 0
3 years ago
All of the following are examples of current account transactions EXCEPT: Elimination Tool Select one answer A The United States
9966 [12]

Answer:

E

Explanation:

the current account of a country measures the value of the trade balance, transfers and the net income

the component of the current account includes

trade balance - it measures the value of the  import and export of goods and services of a country.

net income - measures the value of the income received by a country's residents less the income paid to foreigners

transfers - it includes income sent home by a country's citizens working outside the country

Asset income - measures changes in the asset income

this transaction - China purchases $10 billion of United States government securities - would be included in the capital account

7 0
3 years ago
. Underwater Experimental is considering a project which requires the purchase of $498,000 of fixed assets. The net present valu
GarryVolchara [31]

Answer:

$13.25

Explanation:

The computation of the new book value per share is as follows

current market price per share is

= market value ÷  number of shares outstanding

= $936,000 ÷ 60,000

= 15.6

Now

number of shares to be issued is

= cost of the machine ÷current market price per share

= $498,000 ÷ $15.60

= 31923.07692

Now

The new book value per share is

= (current book value + amount raised from the issuance of shares ) ÷ ( current number of shares + number of shares issued for machinery purchase

= ($720,000 + $498,000 ) ÷ ( 60,000 + 31923.08 )

= $13.25

3 0
3 years ago
When we use a set of well defined steps to perform a task or solve a problem, we are using a/an _____?
Alik [6]
We are using an algorithm
3 0
3 years ago
Mercedes-Benz has a self-driving car capable of 80 miles-per-hour speed. You have to keep your hands on the wheel in this E-clas
Ket [755]

Answer:

I would use survey research to determine the general opinion, positive or negative, on the feature from the general public.  

Explanation:

When conducting any survey research, it is important to sample a wide variety of people. In this case, you would want to survey the general population, not just former Mercedes customers.  

I would design a focus group survey with a series of questions where participants can choose from a range, 0-5, on how much they agree with a certain statement.

At the beginning of the survey, participants would read a brief paragraph explaining the features on the new car before continuing to the part where they record their responses.

Once the survey is conducted, the data can be analyzed. If the majority, say 70%, of all people surveyed agree strongly that a self driving car is a good idea and that the world is ready then you can assume that the general population is in fact ready.

7 0
3 years ago
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