Answer:
a
Explanation:
this is due to the initial uptake for the product . it levels to repeat customers but others drop off the sales due to other reasons
Answer:
a. The effect of the tea shipment from India:
Imports:
Direction of change? (increase, decrease, no change)
Magnitude of change = $1,500,000
b. Because of the identity equation that relates to net exports, the (increase/decrease?) in U.S. net exports is matched by (an increase/a decrease?) in U.S. net capital outflow.
c. Examples of how the United States might be affected in this scenario:
The Indian tea producer purchases $1,500,000 worth of stock spread out over a few U.S. companies.
The Indian tea producer hangs on to the $1,500,000 so that it can use the U.S. dollars to make investments.
Explanation:
The net exports identity equation "Net Capital Outflow = Net Exports" measures the imbalance between a country's exports and imports. It also measures the imbalance between the foreign assets bought by domestic residents and the domestic assets bought by non-resident foreigners.
Answer:
YTM is 7.43%
Explanation:
The yield to maturity of a bond can be computed using the rate formula in excel,which is given below:
=rate(nper,pmt,-pv,fv)
the nper is the number of coupon interest the bond would pay before it is redeemed at maturity starting from ,which is 15 years multiplied by 2=30
the pmt is the semiannual coupon payable by the bond,which is $1000*9.1%/2=$45.5
the pv is the price of the bond which is 115%*$1000=$1150
the fv is the face value of the bond at $1000
=rate(30,45.5,-1150,1000)=3.715%
The rate of 3.715% is a semi annual rate
annual rate 7.43%(3.715%*2)
