Answer:
ill do it of you make it more readable
Explanation:
Answer:
C. raise the real federal funds rate by half of a percentage point
Explanation:
As per the Taylor rule, If inflation rate and target inflation rates are same and real GDP exceeds potential GDP by 1%, then real federal fund rates should increase by .5%. It is as per the Taylor rule formula.
Answer: 1 and 3 is correct
Answer:
$ 975.93
Explanation:
The market value of the bond can be computed using the pv formula in excel as follows:
=-pv(rate,nper,pmt,fv)
rate is the semiannual yield to maturity i.e 6.94%/2=3.47%
nper is the number of semiannual coupon payments the bondholders would receive ,which is 7*2=14
pmt is the semiannual coupon payment=$1000*6.5%*6/12=$32.5
fv is the face value at $1000
=-pv(3.47%,14,32.5,1000)
=$ 975.93
The price of the bond is $ 975.93 which means that it would be issued at a discount of $ 24.07 when compared to face value of $1000
Answer:
C. $3,500
Explanation:
The formula for a straight-line method of depreciation is provided below:
annual depreciation charge=(cost-salvage value)/useful life
cost of the new truck=$42,000
salvage value=$0
useful life=7 years
depreciation=($42,000-$0)/7=$6,000( same as given in the question)
The truck was used for 7 months in the first year ended, from June 1 2019 to December 31 2019
Depreciation for the first year=$6000*7/12=$3,500
