Answer:
The price of the bond will be $879
Explanation:
Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
According to given data
Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually
Number of periods = n = 2 x 8 years = 16 periods
Current Yield = r = 8.3% / 2 = 4.15% semiannually
Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]
Price of the Bond = $521.74 + $357.26 = $879
Answer:
Explanation:
If the government changes taxes without changing government spending to eliminate the recessionary gap, will the minimum required change in taxes be greater than, smaller than, or equal to the minimum required change in government spending?
The minimum required change in taxes will be greater than that of the minimum required change in government spending
tax multiplier (mpc/mps = 0/8/0.2=0.4) is smaller than the government spending multiplier (1/mps= 1/.2=5) because of the initial increase in disposable income caused by the decrease in income tax will be saved rather than spent
<h2>cause _____ in this community, asnew regulation requires the local coal plant to install filtering technology to reduce their <em><u>carbon emissions by 50%. Purchasing the necessary equipment is too expensive for this business, forcing them to close the plant and lay off its 500 employees. Although the intent of the new regulation was to address potential _____ caused by the plant, the closing of the business will likely cause _____ in this community, as many of its</u></em> residents relied on jobs at the plant.</h2>
Answer:
Auto insurance policy with Bodily injury liability limits = 250/500
personal umbrella policy with a limit = $1 million
Self-insured retention = $500
Here, total claim = $750,000
Amount paid by the auto insurance policy = $250,000
Remaining = $750,000 - $250,000
= $500,000
Remaining claim amount of $500,000 shall be paid by the umbrella policy.
The answer will be C
i hope this helps
