Answer:
The new real interest rate is 15%
and the lender was hurt.
O 15%; lender
Explanation:
a) Data and Calculations:
Fixed nominal interest rate = 13%
Real interest rate for the bank's profit margin = 10%
Inflation rate = 3% (13% - 10%)
Unanticipated inflation rate = 7%
Nominal interest rate = 17% (10% + 7%)
But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.
Answer:
Explanation:
Which of the following tasks are least likely to be part of the accountant's role in ... be done, which are technical, environmental, legal, operational, and sensible.
Answer:
The quoted price of the bond is $1,748.41
Explanation:
The quoted price of the bond can be computed using the pv formula in excel which is given below:
=-pv(rate,nper,pmt,fv)
The rate is semiannual yield to maturity since the bond pay interest semiannually,which is 6.9%/2=3.45%
nper is the number of coupon interests the bond would pay over its entire bond life which is 24 years multiplied 2 i.e 48
pmt is the coupon interest payable semiannually which is $2000*5.82%/2=$58.20
The fv is the face value of the bond at $2000
=-pv(3.45%,48,58.20,2000)=$ 1,748.41
The bond quoted price is currently $ 1,748.41
Answer:
Consumer Credit Legislation.
Explanation:
Consumer credit legislation demands that lenders provide potential borrowers with one or more measures of the cost of a loan.
