Answer:
12.3%
Explanation:
In this question, we are asked to calculate what is believed a 2-year market security will be yielding, 4 years from now
To calculate this, we proceed mathematically;
2 year yield 4 years from now = [ ( 1 + 0.0765)^6 / ( 1 + 0.054)^4]^1/2 - 1
2 year yield 4 years from now = [ 1.5563 / 1.2341]^1/2 - 1 = 0.123
2 year yield 4 years from now = 0.123
2 year yield 4 years from now = 12.3%
Answer:
C. interest rate advertised by lenders
Explanation:
APY stands for Annual percentage yield. It is the rate at which deposits earn interest in a checking or savings account. In other words, APY represents the amount of interest a deposit earns for one year when in a bank account.
The APY is a standardized presentation of interest to be earned. It incorporates all considerations, such as the compounding effect. APR makes it possible to compare expected returns from various financial instruments or institutions.
Answer: c. An increase in the aggregate price level causes consumer and investment spending to fall because consumer purchasing power decreases and money demand increases.
Explanation:
The Aggregate Demand (AD) curve is used to measure the impact that price level has on the expenditure in the economy.
The AD comprises of Investment, Consumption Spending, Government spending and Net Income.
When prices are high, households will spend less as they cannot afford to spend a lot which will reduce consumption spending.
Another result of a high price level is that people will have less money to save and so there will be a lower supply of loanable funds.
Both of these components of the AD reduce when prices increase and vice versa. This is why the AD is downward slopping.
<span>Answer:
a. Assets – Liabilities = Equity (500 – 200)/10 = 30 b. Assets – asset reduction – liabilities = equity (450 – 200)/10 = 25 c. Assets – asset reduction – liabilities = equity; shares repurchased = 50m/30 [see a.]=1.667 (450 – 200)/(10 – 1.667) = 30 d. Assets – asset reduction – liabilities = equity; debt as before 200/250 = 0.8</span>