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sashaice [31]
3 years ago
11

On September 1, 2012, an investor purchases a $10,000 par T-bond that matures in 8 years. The coupon rate is 8 percent and the i

nvestor buys the bond 45 days after the last coupon payment (135 days before the next). The ask yield is 7 percent. The dirty price of the bond is
Business
1 answer:
Elden [556K]3 years ago
3 0

Answer:

Dirty price of the bond = $10,098.63

Explanation:

Clean price = $10,000

Accrued interest = F * (C / M) * (D / T) ............... (1)

F = Face value = $10,000

C = Total annual coupon rate = 8%, or 0.08

M = Number of coupon payment per year = 1

D = Days since last payment date = 45

T = Accrual period (Number of days between payments) = 365

Substituting the values into equation (1), we have:

Accrued interest = $10000 * (0.08 / 1) * (45 / 365) = $98.63

Dirty price of the bond = Clean price + Accrued interest = $10,000 + $98.63 = $10,098.63

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Jessica who owns a restaurant in New York City and is generating handsome profit from the business, has decided to take a portio
lara [203]

Answer:

Financialisation

Explanation:

Financialisation is about changes in the actual conduct and meaning of work .

5 0
3 years ago
A. How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?
Sonja [21]

Answer: $9909

Explanation:

Let the amount that will be paid be represented by y. The question can now be solved as:

(10000 - y)/10000 × 360/182 = 0.018

(10000-y)/10000 = 0.018 × 182/360

(10000 - y)/10000 = 0.0091

10000-y = 0.0091 × 10000

10000 - y = 91

y = 10000 - 91

y = $9909

4 0
3 years ago
The classical model assumes that wages and prices A. are flexible in the long run but not in the short run. B. are always comple
PtichkaEL [24]

Answer:B. are always completely flexible

Explanation:The classical theory proposes that all markets reequilibrate because of adjustments in prices and wages which are flexible. For instance, if an excess in the labor force or products exist, the wage or price of these will adjust to absorb the excess. If prices and wages are flexible, markets reequilibrate.

Wages are said to be flexible when they respond to changes in supply and demand and lead to the market clearing wage being set. It implies that the wage will be set by the Marginal Revenue Product of labour and marginal cost of labour. Any change in supply and demand for labour will lead to a change in the wage rate.

The importance of wage flexibility arises from the fact that, in most macroeconomic models, we find an inverse relationship between wages and employment.

3 0
3 years ago
Zack has two savings accounts with a total of $9,000. he withdrew 10% from one and 60% from the other to buy his girlfriend an e
skelet666 [1.2K]
Originally,
Let x = the balance in the first account.
Let y = the balance in the second account.

The total amount in the two accounts is $9,000, therefore
x + y = 9000                      (1)

Zack withdraws 10% of x and 60% of y for a total of $2,175.
Therefore
0.1x + 0.6y = 2175
or
x + 6y = 21750                   (2)

Subtract (1) from (2).
x + 6y - (x + y) = 21750 - 9000
5y = 12750
y = 2550
From (1), obtain
x = 9000 - 2550 = 6450

The balance in the first account is
0.9*x = 0.9*6450 = $5,805
The remaining balance in the second account is
0.4*y = 0.4*2550 = $1,020

Answer:
The balance in the first account is $5,805
The balance in the second account is $1,020

8 0
3 years ago
This monetary policy the economy's demand for goods and services, leading to product prices. In the short run, the change in pri
RoseWind [281]

Answer:

Fiscal policy

Explanation:

Fiscal policy works with the real sector such as good and services

If firms produce more goods and services it increases employment

3 0
3 years ago
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