Answer:
Laurel: price will decrease by 4.73% if the rates increases by 2%
and it will increase by 5.66% if the rates decreases by 2%
Hardy:
+22.28% if rate fall by 2%
-16.05% if rate decrease by 2%
Explanation:
To solve for percentage we use $1 as face value
We solve calculating the preent value of the coupon payment using the present value of an ordinary annuity formula
and add it with the present value of maturity which is calculate with the present value of lump sum
Laurel Inc:
C 0.0350
time 6.0000
rate 0.0450
PV 0.1805
Maturity 1.00
time 3.00
rate 0.09
PV 0.77
PV c $0.1805
PV m $0.7722
Total $0.9527
0.9527 - 1 = - 0.0473
a decrease of 4.73 if rate increase by 2%
C 0.0350
time 6.0000
rate 0.0250
PV 0.1928
Maturity 1.00
time 3.00
rate 0.05
PV 0.86
PV c $0.1928
PV m $0.8638
Total $1.0566
5.66% increase if rates fall 2%
For Hardy Corp we do the same procedure
C 0.0350
time 32.0000
rate 0.0250
PV 0.7647
Maturity 1.00
time 16.00
rate 0.05
PV 0.46
PV c $0.7647
PV m $0.4581
Total $1.2228
22.28% if rate fall by 2%
C 0.0350
time 32.0000
rate 0.0450
PV 0.5876
Maturity 1.00
time 16.00
rate 0.09
PV 0.25
PV c $0.5876
PV m $0.2519
Total $0.8395
0.8395 - 1 = 0.1605
Agricultural economic transactions that has no coercion are win win situations because as the coercion means, such as forcing an individual with the use of threats in order to do something-- and is not in the transaction, it is already a win win situation because coercion is not involve, and people who are involve have the freedom to do as they please and there will be agreement with both parties with no force involve.
Answer:
Teaching can be defined as engagement with learners to enable their understanding and application of knowledge, concepts and processes. It includes design, content selection, delivery, assessment and reflection
Explanation:
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Answer:
The price level and GDP will fall.
Explanation:
A decline in money supply will increase the interest rate, as a result the investment will decline. This will cause production to decrease. An increase in tax will cause the cost of production to increase, reducing the supply. The taxes will decrease the disposable income, further reduing demand and cnsumption. A pessimistic expectation of business will also cause production to decline.
A rise in the value of dollars will make exports expensive, reducing exports. All of this will cause the GDP and price level to decline.
Answer:
b. minimum price that can be legally charged for a product or service
Explanation:
A price floor represents a minimum price that can be legally charged for a product or service. A price floor is the lowest legal price that can be paid in markets for goods and services, labor, or financial capital. There are many goods which have price floors imposed by the government; for example agriculture good. In an organizations, unions may also impose price floors which could be the minimum rates for the staff etc.