Answer: False
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation.
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated.
Answer:
$22,820
Explanation:
Calculation to determine Determine the present value of the par value of the bonds.
Discount rate =8%/2
Discount rate= 4%
Present value factor of 20 periods at 4%= ( 1 / 1.04^20 )
Present value factor of 20 periods at 4%=0.4564
Using this formula
Present value of the par value of the bond = Future value of the bond x Present value factor =
Let plug in the formula
Present value of the par value of the bond=$50,000 x 0.4564
Present value of the par value of the bond = $22,820
Therefore the present value of the par value of the bonds is $22,820
Answer:
O Downsizing
Explanation:
A lay off happens when the employer has closed down, has changed locations, or when there is not sufficient work for all the employees. A layoff is not caused by an employee's fault.
Downsizing refers to scaling down of operation. When a company downsizes, some of the employees will be laid off. Theodosia should mention she was laid off in her next application. The potential employer will realize that she wasn't at fault at her previous workplace.
Answer:
The hair dryer cost cannot exceed 27 dollars per unit
Explanation:
the target cost will the one which achieve the target profit at the selling price of the market.
In this case we are given that selling price is $53 and we want to achieve a 26 dollar gain per unit therefore:
revenue - cost = profit
revneue - profit = cost
53 -26 = cost
cost = 27
