Answer:
a. The advantages of the flexible exchange rate system include: (I) provides insulation against unemployment problem in other countries and (ii) promotes economic development and helps to achieve full employment in the country, iii) automatically corrects the disequilibrium in the balance of payments.
b. If exchange rates are fluctuating randomly, that may discourage international trade and encourage market segmentation, they are very volatile
c. Economic agents can hedge exchange risk by means of forward contracts and other techniques. In addition, under a fixed exchange rate regime, governments often restrict international trade in order to maintain the exchange rate.
Explanation:
Answer: c.$71 per machine hour
Explanation:
The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.
They forecasted total overhead of $11,597,000 with 164,000 total machine hours.
Since the rate is based on Machine Hours the rate would be,
= Total Forecasted Overhead / Total Forecasted Machine Hours
= 11,597,000 / 164,000
= 70.71
= $71
Answer: You renovate the second floor of your building to increase the size of the dining room.
Explanation:
I believe that you are experiencing a shy or embarrassed feeling. (>_<)
Answer:
In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.
As the first cash flow is received today and the last will be received 3 years form now there will be a total of 4 cash flows
1) 218.19 (Will not be discounted as we are receiving it today in the present)
2) 218.19/1.0987 (Discount by 1 year as cash will be received in 1 year)
3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)
4) 218.19/ 1.0987^3 (Discount by 3 years as cash will be received in 3 years)
= 218.19 + 198.58 + 180.74+ 164.51 = 762.02
PV of Bond = 1529-762.09= 766.91
Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000
In a financial calculator put
PV= -766.91
N= 46
FV=1000
PMT= 32
and compute I
I is 4.38 and we will multiply it by 2 because the payments are semi annual. So we will get an I of 8.76
YTM= 0.0876
Explanation:
