The job of the Federal Reserve System is to control the supply of money in the United States. Although it might seem like the Federal Reserve System prints the money as well, but this is in fact not true. The U.S. Treasury prints paper and coin currency and the Federal Reserve System distributes the money globally.
Answer:
YTM = 8.93%
YTC = 8.47%
Explanation:
The first part is the present value of the coupon payment until the bond is called.
The second is the present value of the called amount
P = market price value = 1,200
C = annual coupon payment = 1,000 x 12% 120
C/2 = 60
CP = called value = 1,060
t = time = 6 years
Using Financial calculator we get the YTC
8.467835879%
The first part is the present value of the coupon payment until manurity
The second is the present value of the redeem value at maturity
P = market price value = 1,200
C = coupon payment = 1,000 x 12%/2 = 60
C/2 = 60
F = face value = 1,060
t = time = 10 years
Using Financial calculator we get the YTM
8.9337714%
Answer:
Check the answers below
Explanation:
- The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526
- Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days
- Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days
The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.
Answer:
The correct answer is letter "D": All of these are correct.
Explanation:
The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.
