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Simora [160]
3 years ago
12

Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to maturity has a coupon rate of 4%. Th

e yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note
Business
1 answer:
Veronika [31]3 years ago
7 0

Answer:

$8,744,669.10

Explanation:

<em>Using the MS Excel Present value function</em>

Value of the note = PV(Rate, Nper, PMT, -FV, Type)

Value of the note = PV(7.7%/2, 4*2, -1000000*4%/2, -1000000)

Value of the note = 8744669.0978

Value of the note = $8,744,669.10

So, the value of the Treasury note is $8,744,669.10

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There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
Mashutka [201]

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

5 0
3 years ago
If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important fa
babunello [35]

Answer:

c. criterion deficiency

Explanation:

Based on the information provided within the question it can be said that in this scenario it seems that the performance management system suffers from Criterion deficiency. This term refers to a company failing to assess one or more very important aspects of the process of job performance appraisal for employees within the company. Such as is the case in this scenario as the company is only looking at the sales revenue and completely ignoring all of the other important factors.

8 0
3 years ago
Suppose that, due to exceptionally good weather in the Mid West, the United States experiences an increase in grain production i
Eva8 [605]

In this question, we are not provided with the specific numbers that are necessary to produce a graphical approach. Therefore, we cannot provide that part of the answer. However, we are able to talk, in general terms, about what an increase of grain production in the United States would cause in the rest of the world.

This is an effect of what is known as globalization. Globalization refers to the integration of the world's markets in goods and services, as well as flows of investment and people across national boundaries.

In order for globalization to take place, several processes have to occur first. Nations begin specializing in the production of good and services in which they are relatively low-cost producers. This allows for mutual gains for people in trading countries. However, while some groups might benefit, some others might be harmed by this pattern, such as those producing the goods that compete with the imports. In this example, some countries might benefit, but those that compete with the United States in terms of grain production might be damaged by the increased production of the United States.

6 0
3 years ago
You are confronted by an angry customer who feels they deserve special treatment outside of your normal customer service policy.
katovenus [111]

Answer:D.

maintain a concerned expression

Explanation:

One of the main traits of a successful Custer service agent is empathy. When the customer is angry and one isaintaining a happy or pleaseant face, he will interprete it as lack of concern for his plight.

The best expression is to maintain a concerned expression that shows you sympathise with his situation and you have personalised the situation.

This sympathy is expressed as doing your best to effectively solve the customer problem.

7 0
3 years ago
A ___________ plan can help you identify steps needed to restore a failed system. business continuity disaster recovery risk man
Alex777 [14]

Answer:

Disaster recovery plan

Explanation:

Disaster recovery plan (DRP), it is a plan or approach which is structured as well as documented, states how the organization or business could resume work after the unplanned incident happen.

It is the vital part of the business as depend on the functioning of IT, it aims to resolve the loss of data and also recover the system functionality so that the could perform well after incident.

So, DRP, could help in recognizing the steps required to restore the failed system in the business.

7 0
3 years ago
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