Answer:
Price of bond=948.8583731
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
</em>
Value of Bond = PV of interest + PV of RV
Semi-annual interest = 8.6% × 1,000 × 1/2 =43
Semi-annual yield = 9.4%/2=4.7
%
<em>PV of interest payment</em>
PV = A (1- (1+r)^(-n))/r
A- 43, r-0.047, n- 20
= 43× (1-(1.047)^(-10)/0.047)
= 549.7724893
<em>PV of redemption Value</em>
PV = F × (1+r)^(-n)
F-1000, r-0.047, n- 20
PV = 1,000 × 1.047^(-20)
PV = 399.0858837
Price of Bond
549.772 + 399.085
=948.8583731
Answer and Explanation:
a. In case when the new bills are kept by the people so the supply of money would be increase by a very similar amount as it was dropped off the plane. That's because the banking is not in the image, so there is no impact on the money multiplier.
b. If the amount is deposited in the bank, the cash supply would rise with the money multiplier being taken into account. Money Multiplier = Deposited currency / reserve ratio. The overall supply of money that will raise be 1 billion / 0.1.
c.Again, if a 100% reserve banking is exercised by the bank, so the boosted money supply would be the same value as it has been deposited.
d. If half of the value is held by the public and half of the value is deposited with the bank at 10% of the reserves, the supply of money rises by half of the amount which is held by the public in addition of half of the value / reserve ratio that is 10%.
I looked up the question, since this one is incomplete. I've attached an image of the correct chart. Elvis' marginal benefit of the fourth sandwich is his total benefit of eating 4 sandwich minus his total benefit from eating 3 sandwiches.
Looking at the chart, we see that this gives us 81-75 = 6.
Therefore, the Marginal Benefit of a fourth sandwich is 6.
<span>A) 5.5%
A) rE = Div1 / P0 + g
0.1 = 0.045 + g, so g = 5.5%</span>
Answer:
Brain didn't act ethically and didn't follow IMA's principles of ethical conduct.
IMA's 4 principles are:
- Competence: this refers to basically acting and performing in a professional manner. Brian didn't act professionally since he intentionally miscalculated the price of lumber in order to get the lowest possible cost.
- Confidentiality: refers to keeping information to yourself, i.e. do not tell outsiders about the specifics of your job. This principle was not an issue here.
- Integrity: refers to avoiding conflicts of interests. Obviously Brian didn't follow this principle since he is taking advantage of the company's policy and acting unfairly.
- Credibility: refers to information and all the respective analysis being correct and true. Since Brian is deliberately cheating on the company, he is not using the correct information on purpose and is lying.
