Answer:
Currency such as notes and coins with the people.
Demand deposits with the banks such as savings and current account.
Time deposit with the bank such as Fixed deposit and recurring deposit.
What economic event began in 2007?
the Great Recession
O the Reconstruction
the Progressive Era
the Great Depression
Answer:
The Great Recession
Explanation:
The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II. Beyond its duration, the Great Recession was notably severe in several respects. Real gross domestic product (GDP) fell 4.3 percent from its peak in 2007Q4 to its trough in 2009Q2, the largest decline in the postwar era (based on data as of October 2013). The unemployment rate, which was 5 percent in December 2007, rose to 9.5 percent in June 2009, and peaked at 10 percent in October 2009. (Robert Rich, federalreservehistory.org)
standards of excellence in corporate community involvement include all of the following except a. issues management. b. leadership. c. efficiency. d. relationship building.
Standards of excellence in corporate community involvement include all of the following except efficiency.
What is not standards of excellence in corporate community involvement
Efficiency is an important aspect of corporate community involvement, but it is not typically considered a standard of excellence in this context. The other options listed are all commonly recognized as key standards for effective corporate community involvement:
a. Issues management: This involves identifying and addressing the key social and environmental issues that are relevant to a company and its stakeholders. Effective issues management is essential for ensuring that a company's community involvement efforts are aligned with its values and goals.
b. Leadership: Corporate community involvement requires strong leadership at all levels of the organization, from the CEO to front-line employees. Leaders must be committed to community involvement and must provide the resources and support needed to make it a success.
c. Relationship building: Building strong relationships with community stakeholders, including customers, employees, suppliers, and local residents, is critical for effective community involvement. Companies must be able to listen to the needs and concerns of these stakeholders and work collaboratively with them to address important issues.
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The wearing away of the Earth's surface is called
Answer:
Erosion is the wearing away of the Earth's surface.
Equilibrium price is $8 in a perfectly competitive market. For a perfectly competitive firm, MR = MC at 150 units of output. At 150 units, ATC is $11, and AVC is $10. The best policy for this firm is to __________ in the short run. Also, total fixed cost equals __________ and total variable cost equals __________ for this firm.
Answer:
Shut down
$1650
$1500
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
in the shut run, a perfect competition should shut down if average variable cost is greater than price. this is the case for this firm $10 is greater than $8.
total fixed cost = average fixed cost x quantity produced = $11 x 150 = $1650
Total variable cost = average variable cost x quantity produced = $10 x 150 = $1500
A major grocery store chain is trying to cut down on waste. Currently, they get peaches from two different distributors, wholefruits and greengrocer. Out of a two large shipments, the manager randomly selects items from both suppliers and counts the number of items that are not sell-able due to bruising, disease or other problems. She then makes a confidence interval. Is there a significant difference in the quality of the peaches between the two distributors? 95% ci for pw-pg:(-0. 156, 0. 064).
A significant difference in the quality of the peaches between the two distributors is option D. Option D says that We are 95% confident that the proportion of non-sell-able items for Whole Fruits is anywhere between 0.064 and 0.156 HIGHER than the proportion of non-sell-able items for Greengrocer.
Grocery stores generally can be defined as focus on beverages, food and some household goods. They are typically local chains or also single-location stores and may be family-owned . In other words, "grocery store" or known as supermarket. They offer the ingredients of provide jobs, foster a sense of community and home cooked meals. By comparing a set of inherent characteristics with a set of requirements we are generally can determine the quality of something.
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somebody help me please
What happens if you don’t have a checking account? Where can you go to cash your check?
If you cash it at your bank, can you always have your money immediately?
Why?
What would prevent you from cashing your whole check instead of depositing it?
Answer:
Explanation:
1. Visit the Issuing Bank
Most banks will be willing to cash checks that have been issued from their accounts, which means you can visit a local branch of the issuing bank to get your check cashed. The big benefit of this is that you’ll often be able to cash both personal and payroll checks,And yes They will give the money back immediately but you will have to pay a fee. They will give it back immediately because they are required by the state . 2. Go to Walmart
The retail giant Walmart offers check-cashing services for customers. They’ll cash payroll checks, government checks, tax checks, and MoneyGram money orders, but not personal checks. The fee is $3 for any check up to $1,000, and $6 for any check between $1,000 and $5,000, which is the check-cashing limit.
You can Endorse the Check Over to a Friend, If you have a friend or family member whom you trust, and who has a checking account, you may be able to cash your check by endorsing the check over to them to cash. Ask the bank first if they will honor the check this way first though, since individual bank policies vary. When you endorse the check, you’ll sign your name and underneath write “Pay to the order of [friend’s name],” under which they’ll endorse the check. Their bank will then cash the check with no penalties.
Obviously, this only works if you completely trust your friend. It’s also not a favor you’ll want to get in the habit of asking, as it could be a major inconvenience for them.
You can Use a Check-Cashing Store ,This should be a last resort, as these sorts of establishments generally charge high rates for check cashing. In general, you can expect check-cashing stores to charge you a percentage of your check’s total, although some will also charge a flat fee on top of that.
You can try Prepaid Cards,Some banks will allow you to cash a check for “free” if you load the money into a prepaid card or prepaid account. The problem with these services is that the cards and accounts often have hefty monthly maintenance fees, as well as other hidden charges and fees.
The only thing that would prevent you from cashing your whole check instead of depositing is because If the bank are prepared to cash it then you might as well deposit it and at the same time do a part withdrawal of whatever cash portion of it you need. Why get the cashier to count out the full value of the check and then you hand back some of it to be deposited and recounted . I really indeed Hopes this helps.
why is free car insurance an incentive for college graduates and first time buyers?
Answer:
Free car insurance is an incentive for college graduates and first time buyers sheerly because of the price. College graduates and the like usually do not have the wealth to spend too much on car insurance.
Explanation:
When the market is in equilibrium, the price that consumers pay and that producers receive exactly balances the
marginal benefit and marginal cost of consuming and producing a good or service.
A situation in which the quantity of output demanded is greater than the quantity of output supplied at the current market price is called a
A shortage occurs when:
A shortage occurs when:
the quantity of output demanded is greater than the quantity of output supplied at the current market price.
A situation in which the quantity of output supplied is greater than the quantity of output demanded at the current market price is called _____.
surplus
Shortages and surpluses are represented by the:
horizontal distance between the quantity demanded and the quantity supplied.
Equilibrium means that:
we should expect to see the price and the quantity converge at specific levels.
When the market is in equilibrium, the price that consumers pay and that producers receive:
balances the marginal benefit and marginal cost of consuming and producing a good or service.
Which of the following is true of a normal good?
The quantity demanded falls as the price rises.
A situation in which the quantity of output demanded is greater than the quantity of output supplied at the current market price is called a __________.
shortage or deficit
A surplus occurs when:
quantity demanded < quantity supplied.
In equilibrium:
the quantity supplied equals the quantity demanded.
The nonprice determinants or other factors that affect demand are held constant for any given:
demand curve.
When the _____ of a good changes, the quantity demanded changes.
price or cost
A shortage is sometimes called
excess demand
A surplus occurs when:
supplied is greater than the quantity of output demanded at the current market price.
A nonprice determinant of demand is:
a characteristic of demand for a good, service, or resource other than its own market price.
Shortages and surpluses are represented by the:
horizontal distance between a point on the demand curve at a particular price and a point on the supply curve at the same price.
Non-price determinants are held ____ for any given demand curve. (Use one word for the blank.)
constant
When the price of a good, service, or resource increases:
the quantity supplied increases.
Which of the following is true of a normal good?
The non-price determinants or other factors that affect supply are:
held constant for any given supply curve.
Shortages:
are usually the product of price controls.
When a nonprice determinant of supply changes:
the relationship between the quantity supplied and the price changes.
A characteristic of demand for a good, service, or resource other than its own market price is:
a nonprice determinant of demand.
Identify which of the following is an example of a shortage.
No snow shovels are available when a blizzard is forecast.
When a shift of the supply curve occurs:
more or less is supplied at every price.
Which of the following occurs when the price of a good increases?
There is an increase in the quantity supplied.
Non-price determinants are held _____ (one word) for any given supply curve.
constant
A change in a nonprice determinant of supply will:
result in a shift of the supply curve.
The market adjusts to a new equilibrium price and quantity when a non-price ______ of supply changes.
determinant or factor
A nonprice determinant of demand is:
According to the question, In an equilibrium market, the prices balance the marginal benefit and marginal cost of consuming and producing a good or service.
What exactly is a market?A market is a gathering place for consumers and sellers where they can exchange goods and services. Markets might be real-world, like a physical store, or digital, like an online merchant.
What causes the market to crash?A significant calamity, a financial crisis, or the deflation of a looooooooong speculative bubble can all lead to a stock market decline. Another important factor is the public's irrational anxiety following a stock market decline, which can lead to panic selling and more price declines.
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One method to prevent pilferage in a bar is to use
Select one:
a. cash registers
b. coupons or tokens
c. higher drink prices
d. shoppers
Cash registers play a crucial role in managing and tracking financial transactions within a bar. It is one method to prevent pilferage in a bar is to use, correct answer is option a
They provide a secure and accountable system for recording sales and cash flow, making it more challenging for employees to engage in pilferage. The correct answer is a (cash register).
Cash registers have several features that contribute to preventing pilferage. Firstly, they accurately calculate and record the amount of each transaction, ensuring that the money collected matches the sales made. The correct answer is a
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(Payback period, MPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $70,000 and expected free cash flows of $22.000 at the end of each year for 5 years. The required rate of return for this project is 6 percent a. What is the project's payback period? b. What is the project's NPV? c. What is the project's Pn d. What is the project's IRR? The project's payback period is years. (Round to two decimal places)
The payback period is the amount of time it takes for a project to recoup its initial investment. In this case, the initial investment is $70,000.
The expected free cash flows of $22,000 at the end of each year for 5 years means that the project will break even after 3.18 years (70,000/22,000).
The project's NPV is the present value of the expected cash flows minus the initial investment. In this case, the NPV is $14,517.93 (calculated using the 6% required rate of return).
The project's PI is the expected net present value divided by the initial investment. In this case, the PI is 0.208 (calculated using the 6% required rate of return).
The project's IRR is the internal rate of return. It is the rate at which the NPV of a project is equal to zero. In this case, the project's IRR is 6.45%.
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True or false is April 15th is an important date for people who have a job.
Answer:
true
Explanation:
its Tax Day so they are very busy
assume the beta for the stock market in general is 1.0 and the beta for world-wide television productions is 2.4. if the stock market increases in value by 10 percent, what is the expected increase in value for the world-wide productions stock? group of answer choices 14 percent 48 percent 24 percent 20 percent 12 percent
24 percent, Assume that World-Wide Television Productions' beta is 2.4 and that the beta for the stock market as a whole is 1.0. The predicted rise in value for the World-Wide Productions shares is 24% if the stock market appreciates by 10%.
Consider the stock market as a network of stock exchanges where investors and traders may buy and sell shares of publicly listed corporations. This is a simple way to think about the stock market. A procedure known as an initial public offering allows private firms to list shares of their stock on a market (IPO). The investment includes real-time trading of the stocks of the firms, making it also referred to as a "stock market." Primary and secondary stock markets are two different categories. Please be aware that it only deals in shares, whereas the stock market deals in bonds, derivatives, and foreign exchange, and that both markets operate in different ways.
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hich pricing strategy involves setting a high price for an exclusive, high-end product?
Fiber optics have been "too good for their own good," fueling an over-reliance on (wireless) cloud computing that now requires integrated photonics to relieve the increasing demands society makes of the technology. Can you think of another example where such a back-and-forth between a technology's capability and society's response has guided its evolution?
Answer:
Cell phones
Explanation:
If we go back a few years in time, a little over 30 years actually, cell phones were not smart and you could only talk with them. Actually, they were so big and heavy, that you could use them as hammers also. Motorola's first cell phone was as big as a shoe box and weighted around 2.5 pounds. Back then cell phones were expensive and very few people used them.
Fast forward a few years and smaller cell phones appear and 2G technology arrives. You could use a cell phone to call or message someone else. As cell phones got cheaper, more and more people started to use them and companies like AT&T started to collapse and you couldn't get a decent signal anywhere.
But cell phones would continue to improve and 3G was developed in order to satisfy the growing number of consumers. AT&Ts signal was still terrible. Blackberry came and phones started to get smarter. But as cell phones got smarter, more people wanted them. Then came Steve Jobs with the iPhone and demand grew so much that all the companies' systems collapsed (now all were as bad as AT&T).
That led to the introduction of 4G technology, but even before 4G technology is available everywhere, 5G technology has been developed. Finally, 5G technology is available in all the US (this year AT&T managed to do so, although Verizon did it earlier). But in other countries, 5G technology is already becoming obsolete and 6G is soon to be the standard.
Our everyday use of smart devices has forced technological advances to speed up. It took about 15 years for 2G to arrive, and then it took about 10 for 3G to be available. But in less than 15 years other countries have gone from 3G to 6G (China has already launched its 6G satellites which will start providing that technology).
In what seven (7) way can we promote good marriage in the society
Answer:
1.being loving
2bieng understanding
3being loy
You are a manager in charge of monitoring cash flow at an online retailer that sells some of its own toys as well as some from popular brands like Melissa & Doug. You recently received a preliminary report from your website sales that suggests the growth rate in your Melissa & Doug brand total sales have leveled off, and that the cross-price elasticity of demand between your own branded toys and Melissa & Doug toys is 1.7. In 2021, your company earned about $70,000 from sales of Melissa & Doug toys and about $60,000 from sales of your own branded toys. If the own price elasticity of demand for your own branded toys is -2.5, how will a 2 percent increase in the price of your own toys affect your overall revenues from both your own brand and your sales of Melissa & Doug branded toys?
A 2 percent increase in the price of your own branded toys would lead to a decrease in total revenue of $2,080.
Based on the information provided, we can use the formula for cross-price elasticity of demand to calculate the percentage change in quantity demanded of Melissa & Doug toys in response to a percentage change in the price of your own branded toys:
Cross-price elasticity of demand = (% change in quantity demanded of Melissa & Doug toys) / (% change in price of your own branded toys)
We know that the cross-price elasticity of demand is 1.7, so:
1.7 = (% change in quantity demanded of Melissa & Doug toys) / 0.02
Solving for the percentage change in quantity demanded of Melissa & Doug toys, we get:
% change in quantity demanded of Melissa & Doug toys = 1.7 x 0.02 = 0.034 = 3.4%
This means that a 2 percent increase in the price of your own branded toys will lead to a 3.4 percent decrease in the quantity demanded of Melissa & Doug toys.
To calculate the total revenue change, we need to calculate the price elasticity of demand for your own branded toys:
Price elasticity of demand = (% change in quantity demanded of your own branded toys) / (% change in price of your own branded toys)
We know that the price elasticity of demand is -2.5, so:
-2.5 = (% change in quantity demanded of your own branded toys) / 0.02
Solving for the percentage change in quantity demanded of your own branded toys, we get:
% change in quantity demanded of your own branded toys = -2.5 x 0.02 = -0.05 = -5%
This means that a 2 percent increase in the price of your own branded toys will lead to a 5 percent decrease in the quantity demanded of your own branded toys.
To calculate the total revenue change, we can use the formula:
Total revenue change = (% change in quantity demanded) x (% change in price) x Total revenue
Total revenue in 2021 was $130,000 ($70,000 from Melissa & Doug toys and $60,000 from your own branded toys). So a 2 percent increase in the price of your own branded toys would result in:
Total revenue change = (-5% + 3.4%) x 2% x $130,000
Total revenue change = -1.6% x $130,000
Total revenue change = -$2,080.
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When i grow up i would like to be a real estate agent and also create my own business
can someone help me whit the rest pls!!!
Answer:
re write to (after high school i would follow my dreams and seek my future to become knows as a real estate agent and would love to become one good salary and a wealth living for my future family) -there you go add more if its not enough
Explanation:
What do you think is the main economic reason why businesses grow and fail and why?
Must be written in complete high school level sentences (at least five sentences)
Lack of capital, the retention of an inadequate management team, a deficient infrastructure or business model, and inefficient marketing techniques are among the most common reasons for small business failure.
What are the causes and reasons behind the failure of some business ideas?The fact that the action aspects are not implemented, regularly reviewed, or modified as required is the primary reason for their failure. Because of this, there is a lack of focus and direction. Moreover, it results in an energy loss. If no action is done, nothing can be achieved.
What motivates a business to grow?A growth in output, which encompasses both the creation of commodities and the delivery of services, as is widely known, results in the development of businesses. If people buy this goods, sales go up. When price is constant, sales will increase and sales income will increase as a result.
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cuales son las ideas principales del actor sobre el establecimiento de metas
Explanation:
Bitte sprechen Sie Englisch
Visit your local retailer. Report on your experience as a customer—focusing on how you were greeted, assisted, cashed-out at the register; overall store cleanliness, atmosphere, comfort, and staff presence; and availability of diverse product lines and knowledge of products by the sales staff. How would you rate your client experience and what might you change/or keep the same that would renter a more pleasant experience that would want you to come back.
Retailers should also make sure that their personnel is knowledgeable about the goods they sell and readily available to help the customer.
In addition to being tidy and well-maintained, the business should have a speedy and effective checkout experience. Retailers may boost profits by putting money into improving the shopping experience.
Retailers can give the digital experience a sense of being at a physical store to enhance the customer experience. This is possible by replacing in-store personalized interactions with services like chatbots and tailored recommendations.
As a result, the significance of the rate the client experience are the aforementioned.
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When Hope Springs develops its flavored water additive, it uses the college town where Gabby and Justin are students to gauge if there is ample product interest. Hope Springs uses all the elements of the marketing mix in this effort. The company is engaged in a(n):____. a. standard test market. b. geographic test market. c. controlled test market. d. simulated test market. e. segmented test market.
The correct answer is **a. standard test market**. In a standard test market, the company introduces its product or service into a representative market to gauge consumer response and gather feedback.
Hope Springs is using the college town where Gabby and Justin are students to assess the interest in its flavored water additive, utilizing all elements of the marketing mix (product, price, promotion, and place). By observing consumer behavior and gathering feedback in this specific market, Hope Springs can make informed decisions about the potential success of its product before launching it on a larger scale.
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a country reports that its inflation rate and unemployment rate have both increased. these changes could be the result of question content area bottom part 1 a. a movement downward along the shortrun phillips curve. b. a downward shift of the shortrun phillips curve. c. an upward shift of the shortrun phillips curve. d. a leftward shift of the longrun phillips curve. e. a movement upward along the shortrun phillips curve.
The inflation rate and unemployment rate have both increased. these changes could be the result of c. an upward shift of the shortrun phillips curve.
The link between inflation and unemployment in an economy is represented by the Phillips curve. The two variables frequently exhibit an inverse connection in the short run, meaning that while unemployment is low, inflation is likely to be higher and vice versa. When a nation reports rising unemployment and inflation rates, the short-run Phillips curve is thought to have shifted higher.
Thus, this indicates that the country is suffering more inflation compared to the prior time at every level of unemployment. This change may be the result of a number of variables, including rising total demand, supply shocks, or shifting expectations.
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Every time tom and betty stay at a marriott hotel, they earn points that can be used at a later date for free rooms, meals, and other hotel amenities. marriott is using a _____ retention strategy.
Every time Tom and Betty stay at a Marriott hotel, they accumulate points that can be redeemed later on for complimentary accommodations, meals, and other perks. Marriott employs a retention strategy based on financial bonds.
Financial bonds retention tactics involve allowing customers to build up points that can later be redeemed for cash or other products and services from the same supplier. In the above example, Tom and Betty accumulate points by staying at a Marriott hotel. They can later utilize these points to obtain cost-free lodging, meals, and other services. It therefore provides as an example of a financial bond retention strategy.
An investment in fixed income called a bond mimics a loan from an investor to a borrower (typically corporate or governmental). The provisions of a bond and the payments linked with it could be compared to an agreement between the lender and the borrower.
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A deductible is
a) The discount you deduct from your premium
b) The amount you pay when you file an insurance claim
c) The amount that is deducted when you buy a policy
d) The discount received by a health care provider
Answer:B
Explanation:
A deductible is the amount you owe before insurance pays. Example: If your car insurance has a $500 deductible and you have a fender bender (wreck) let’s say it will cost $2,000 to fix your car. You will pay the $500 deductible and your car insurance company will pay the remaining $1,500
Explain the check and balance of power between the legislative and executive branch when it comes to the power to make laws.
A statute may be subject to the President's veto in the executive branch, but with enough votes, the legislative branch can override the veto. The legislative branch has the authority to ratify presidential appointments, manage the budget, and impeach the president and force their resignation.
How can the executive branch restrain the legislative branch's authority?The ability to veto (override) legislation serves as a check on the power of the legislative branch by the executive branch. The President has three options when it comes to signing a bill into law that Congress has approved: signing it, not signing it, or vetoing it. The bill will be made into law whether it is signed or not.How do checks and balances restrict each branch's power?The Checks and Balances system is linked to the separation of powers in the US. Each part of government is given its own authority to check the other branches and prevent any one branch from becoming overly dominant thanks to the checks and balances system.
What are the legislative branch's safeguards?Federal legislation is subject to the presidential veto. Laws may be ruled unconstitutional by the Supreme Court. To pass laws, both houses of Congress must vote. limiting the legislative branch's authority
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How much should you deposit at the end of six months in an account paying 14% compounded semi-annually to receive semi-annual payments of P2,000 for the next 8 years?
The amount that you should deposit (present value) at the end of six months in an account paying 14% compounded sem-annually to receive semi-annual payments of P2,000 for the next 8 years is P18,893.30.
What is the present value?The present value is the future cash flows discounted at an interest rate to the current period.
Discounting is the opposite of compounding as the latter computes the future value while discounting computes the present value.
The present value is computed using the PV factor or an online finance calculator as follows:
N (# of periods) = 16 semiannual periods (8 years x 2)
I/Y (Interest per year) = 14%
PMT (Periodic Payment) = P-2000
FV (Future Value) = P0
Results:
PV (Present Value) = P18,893.30
Sum of all periodic withdrawals = P32,000.00 (P2,000 x 16)
Total Interest =P13,106.70
Thus, if you deposit P18,893.30 compounded at 14% in six months, you can withdraw P2,000 semiannually for 8 years.
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Both Bond Sam and Bond Dave have 10.4 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 5 years to maturity, whereas Bond Dave has 22 years to maturity. Both bonds have a par value of 1,000 . a. If interest rates suddenly rise by 3 percent, what is the percentage change in the price of these bonds? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. If rates were to suddenly fall by 3 percent instead, what would be the percentage change in the price of these bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.
a. If interest rates rise by 3 percent:
- Bond Sam's price decreases by approximately 11.41 percent.
- Bond Dave's price decreases by approximately 54.85 percent.
b. If interest rates fall by 3 percent:
- Bond Sam's price increases by approximately 13.38 percent.
- Bond Dave's price increases by approximately 196.42 percent.
To calculate the percentage change in the price of Bond Sam and Bond Dave, we need to consider the impact of a sudden 3 percent increase and a 3 percent decrease in interest rates. Let's break down the calculations for each scenario:
a. If interest rates rise by 3 percent:
- Bond Sam has a 5-year maturity, while Bond Dave has a 22-year maturity.
- Both bonds have a 10.4 percent coupon rate and make semiannual payments.
- Since the bonds are priced at par value ($1,000), their initial prices are also $1,000.
To calculate the new prices of the bonds, we need to adjust the discount rates for the increase in interest rates. The discount rate is calculated by subtracting the coupon rate from the yield to maturity (YTM). Since the bonds are priced at par, the initial YTM is equal to the coupon rate.
For Bond Sam:
- Initial YTM = Coupon rate = 10.4 percent
- Increase in YTM = 3 percent
- New YTM = Initial YTM + Increase in YTM = 10.4 percent + 3 percent = 13.4 percent
Using the new YTM, we can calculate the new price of Bond Sam using the present value formula. Since it's a 5-year bond with semiannual payments, we divide the YTM and coupon rate by 2 and double the number of periods.
- New price of Bond Sam = 1,000 * (1 - (1 + (13.4 percent / 2))^(-2 * 5)) / (13.4 percent / 2) = $885.86
For Bond Dave:
- Initial YTM = Coupon rate = 10.4 percent
- Increase in YTM = 3 percent
- New YTM = Initial YTM + Increase in YTM = 10.4 percent + 3 percent = 13.4 percent
Using the new YTM, we can calculate the new price of Bond Dave using the present value formula. Since it's a 22-year bond with semiannual payments, we divide the YTM and coupon rate by 2 and double the number of periods.
- New price of Bond Dave = 1,000 * (1 - (1 + (13.4 percent / 2))^(-2 * 22)) / (13.4 percent / 2) = $451.50
The percentage change in the price of these bonds can be calculated using the following formula:
- Percentage change = ((New price - Initial price) / Initial price) * 100
For Bond Sam:
- Percentage change in price = (($885.86 - $1,000) / $1,000) * 100 = -11.41 percent (rounded to 2 decimal places)
For Bond Dave:
- Percentage change in price = (($451.50 - $1,000) / $1,000) * 100 = -54.85 percent (rounded to 2 decimal places)
b. If interest rates fall by 3 percent:
- We follow the same steps as above, but this time we decrease the YTM by 3 percent.
Using the new YTM and the present value formula, we can calculate the new prices of Bond Sam and Bond Dave.
For Bond Sam:
- New price of Bond Sam = $1,000 * (1 - (1 + (7.4 percent / 2))^(-2 * 5)) / (7.4 percent / 2) = $1,133.80
For Bond Dave:
- New price of Bond Dave = $1,000 * (1 - (1 + (7.4 percent / 2))^(-2 * 22)) / (7.4 percent / 2) = $2,964.17
Using the percentage change formula:
For Bond Sam:
- Percentage change in price = (($1,133.80 - $1,000) / $1,000) * 100 = 13.38 percent (rounded to 2 decimal places)
For Bond Dave:
- Percentage change in price = (($2,964.17 - $1,000) / $1,000) * 100 = 196.42 percent (rounded to 2 decimal places)
Therefore, if interest rates were to suddenly fall by 3 percent, the percentage change in the price of Bond Sam would be 13.38 percent, and the percentage change in the price of Bond Dave would be 196.42 percent.
To know more about interest rates, refer to the link below:
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What is the safest way to install a new flash drive that you just purchased? Check all of the boxes that apply.
Answer:
Plug it into one of the computer's USB ports.Wait for the computer to recognize the flashdrive.Install drivers if prompted to do so.If you invested $250 at 16% how much will have after 4.5 years
Answer:
$180
Explanation:
$250 * 0.16 * 4.5 = $180
Answer:
it depends on how often it's compounded
yearly:
The final balance is $487.53.
The total compound interest is $237.53.
semi-annually:
The final balance is $499.75.
The total compound interest is $249.75.
quarterly:
The final balance is $506.45.
The total compound interest is $256.45.
bi-monthly:
The final balance is $508.79.
The total compound interest is $258.79.
monthly:
The final balance is $511.17.
The total compound interest is $261.17
bi-weekly:
The final balance is $512.48.
The total compound interest is $262.48.
weekly:
The final balance is $513.04.
The total compound interest is $263.04.
daily:
The final balance is $513.53.
The total compound interest is $263.53.
continuous:
The final balance is $513.61.
The total compound interest is $263.61.
Explanation:
hope this helps:)
Vivian conducted market research on her company's products. She found that after the company raised the price of its product by $1.50, the demand in the uptown region remained the same with only minor fluctuations. However, she found that the demand in the downtown region dropped by 20 percent after the price change. How should Vivian take these demands into consideration?
Answer:
One important factor that Vivian needs to consider is that demand changes as a result of changes in price, however, other factors could affect the demand for goods or services, examples are, changes in the price of related goods, the income of the people, changes in preference etc.
Therefore, based on this fact, Vivian should consider "Price elasticity of demand." Price elasticity of demand can be defined as a measurement used in economics to show the responsiveness or elasticity of the quantity demanded of a good or service to a change in its price when nothing but the price changes.