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3 years ago

Which best deceived the nature of cause and effect in the context of the business cycle?

1 answer:

3 0

The option that best describes the nature of the cause and effect in the context of the business cycle is A. Each effect has other effects.
All markets economies go through periods when consumption-spending on goods and services rises. Consumers buy more, companies invest more, and production, income, profit and employment increase. These periods are always followed by periods when investment and spending fall, and unemployment rises. This is the business cycle.

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Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu

OverLord2011 [107]

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

$P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}$

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160 x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

$(1+HPR)^{365/time} -1 = EAY$

where:

Holding period return:

$\frac{Net \: Return}{Investment} = HPR$

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

$(1+HPR)^{365/time} -1 = EAY$

$(1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY$

EAY = 0.049242509 = 4.9242509%

8 0

4 years ago

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of tra

Helga [31]

Answer:

a. not change; improve

Explanation:

Balance of trade is the difference in value over a period of time between a country’s imports and exports of goods and services, usually expressed in the unit of currency of a particular country (e.g., dollars for the United States, yen for the Japan).

Balance of payments record the receipts and payments of the residents of the country in their transactions with residents of other countries.

A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will not change and the balance of payments with Japan will improve.

7 0

3 years ago

The _______ was a foreign policy embarrassment for the United States during the Kennedy Administration.

mrs_skeptik [129]

The Bay of Pigs Invasion was a foreign policy embarrassment for the Kennedy Administration.
When John Kennedy assumed the presidency after Dwight Eisenhower, he was faced with the pressure to act on Cuban dictator Fidel Castro's growing relationship with the Soviet Union (yet another of US' formidable enemies).
His senior advisers urged him to authorize the attack on Cuba and initiate a movement to overthrow Fidel Castro. This played on Kennedy's foreign principle which is for Democratic countries such the US to show a strong force against dictatorships like Castro's. In April 1961, the invasion at the Bay of Pigs failed extremely. Castro was quick to mobilize his militia to counter Kennedy's botched plan. Aside from this, Kennedy made some worst decisions that nailed the coffin shut. Thus the Kennedy Administration suffered a lot of damage due to this failure.

3 0

4 years ago

Read 2 more answers

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment

konstantin123 [22]

Answer:

labor force participation rate= 96.2%

Explanation:

Giving the following information:

Unemployed people= 19 million

Labor force= 500 million

First, we need to calculate the employed people:

Employed population = 500 - 19= 481 million

Now, to calculate the labor force participation rate, we need to use the following formula:

labor force participation rate= (employed people/labor force)*100

labor force participation rate= (481/500)*100

labor force participation rate= 96.2%

4 0

3 years ago

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. B

Elza [17]

Answer:

A) True

Explanation:

Monumental can discharge the contract by frustration. In order for a contract to be discharged by frustration, four conditions have to occur:

An unforeseeable event must occur: In this case the zoning changes were unforeseeable.
No party is at fault: the zoning board made the changes to the zoning of the land.
Performance is impossible: there is no reason why an office building should be built in a residential only area.
The result is radically different than expected: neither Monumental or Champion Builders expected a zoning change to occur.

7 0

3 years ago