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horsena [70]
2 years ago
10

g Suppose a bond is priced at $1035, has 12 years remaining until maturity, and has a 12% coupon, paid monthly. What is the amou

nt of the next interest payment (in $ dollars)
Business
1 answer:
trapecia [35]2 years ago
4 0

Answer:

$10

Explanation:

As the bond is priced at $1035, the par value is $1000.

<em><u>Calculation of the amount of the next interest payment</u></em>

= Par value * Coupon rate/12

= $1000 * 12%/12

= $1000 * 1%

= $10

So, the amount of the next interest payment is $10.

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Answer:

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3 years ago
Asset deflation: Multiple select question. reflects a decline in the productive capacity of assets and therefore reduces potenti
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Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.

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7 0
1 year ago
Which is an example of an automatic stabilizer? As real GDP decreases, income tax revenues: 
A. Increase and transfer payments d
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Answer:

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Explanation:

Automatic stabilizers soften cyclic fluctuations through their effect on aggregate demand. Indeed, when the economy is in a contractive or recessive phase, the negative or very reduced economic growth generates a decrease in fiscal revenues while higher unemployment increases public expenditures. Consequently, private sector disposable income decreases less than GDP does, thus limiting the contractual effect on aggregate demand, growth and employment. Therefore, the budget balance worsens in this phase by stimulating the economy and facilitating economic recovery. In the opposite sense, in times of expansion, automatic stabilizers generate higher public revenues and lower spending, which allows to increase the public surplus - or reduce the deficit - avoiding excessive expansion that could have negative effects on cycle volatility and price stability.

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3 years ago
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can
ElenaW [278]

Answer: $4

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The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.

When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.

The Variable Costs for the containers is $4 so that is the transfer price as well.

7 0
2 years ago
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