3 years ago

Demand-pull inflation occurs when

Business

2 answers:

satela [25.4K]3 years ago

8 0

Answer:

i think its b even tho im probbly wrong

Vedmedyk [2.9K]3 years ago

3 0

B. Demand-pull inflation occurs when demand for goods and services in an economy rises more rapidly than an economy's productive capacity.

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d. Credit to Accounts Receivable.

Explanation:

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a) Pre-tax cost of debt is 8.45%

b) After tax cost of debt is 5.07%

Explanation:

a) Given:

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Assumed par value (FV) = $1,000

Coupon payment (pmt) = 0.0315 × 1000 = $31.5

Current bond price (PV) = 92% of $1,000 = $920

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Calculate semi-annual rate using spreadsheet function =Rate(nper,pmt,PV,FV)

Semi-annual rate = 4.14%

Pmt and FV are negative as they are cash outflows.

YTM = 4.14 × 2 = 8.28%

Effective annual rate = $(1+\frac{Rate}{compounding\ periods}) ^{2} -1$

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