Generally, retirement benefits, including Social Security or pensions, receive a cost of living increase (COLA), annually,

Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are pric

cestrela7 [59]

Answer:

Laurel bond % change = -6.6%

Hardy bond % change = -16.3%

Explanation:

current bond price $1,000

interest rate 7%

Laurel bond matures in 4 years, 8 semiannual payments

Hardy bonds matures in 15 years, 30 semiannual payments

if market interest increases to 9%

Laurel bond:

$1,000 / (1 + 4.5%)⁸ = $703.19

$35 x 6.59589 (annuity factor, 4.5%, 8 periods) = $230.86

market price = $934.05

% change = -6.6%

Hardy bond:

$1,000 / (1 + 4.5%)³⁰ = $267.00

$35 x 16.28889(annuity factor, 4.5%, 30 periods) = $570.11

market price = $837.11

% change = -16.3%

3 0

4 years ago

The Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation, in certain circumstances t

artcher [175]

Answer:

True

Explanation:

Paul Samuelson was an economist and he was the first American to win the Nobel Prize in Economic science. The journey into coming up with comparative advantage started when Stanislaw Ulam challenged him to name a proposition of social science is true and at the same time non-trivial and this led to the Paul's developing comparative advantage years later.

Paul Samuelson however, also argued that while the standard interpretation says a country is better off when it is rich in trading with a poor nation, it is also true that there are circumstances that might leave a rich country worse off when it switches to a free trade rich with a poor nation.

7 0

3 years ago

. Leasing<br> in which one<br> Difine leasing

AlekseyPX

Answer:

the leasing are have a great weekend talk and everything is fine simple statement maney other people. do you Askhed for me and I am also leasan because my ear don't damage perfect sound listean

Explanation:

good habitaon

8 0

3 years ago

In the IS-LM model when government spending rises, in the short-run equilibrium, in the usual case the interest rate __________

GrogVix [38]

In the IS-LM model when government spending rises, in the short-run equilibrium, in the usual case the interest rate rises and output rises.

<h3>What Is the IS-LM Model?</h3>

The IS-LM version, which stands for "investment-savings" (IS) and "liquidity preference-cash supply" (LM) is a Keynesian macroeconomic version that suggests how the marketplace for monetary goods (IS) interacts with the loanable finances marketplace (LM) or cash marketplace.

It is represented as a graph wherein the IS and LM curves intersect to reveal the short-run equilibrium among hobby charges and output.

Your question is incomplete, but most probably your full question was:

In the IS-LM version while authorities spending rises, in short-run equilibrium, withinside the typical case, the interest rate ______ and output ______.

rises; falls
rises; rises
falls; rises
falls; falls

Hence, the appropriate alternative is rises; rises.

Learn more about IS-LM Model on:

brainly.com/question/15310574

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7 0

2 years ago

The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same pr

Stella [2.4K]

Shop 48's new break-even point in unit sales is 14,000 units and dollar sales is $420,000.

<h3>Break even point in units and sales</h3>

Break even point in units sales

Break even point= Fixed cost /Contribution per units

Break even point=$210,000/ ($30-15)

Break even point=$210,000/ $15

Break even point=14,000 units

Break even point in dollar sales:

Break even point in dollar sales =14,000 ×$30

Break even point in dollar sales=$420,000

Therefore Shop 48's new break-even point in unit sales is 14,000 units and dollar sales is $420,000.

Learn more about break even point in units and sales here:brainly.com/question/15281855

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5 0

2 years ago