Answer:
€1.54/$1.00
Explanation:
When the bond sells at par, the implicit €/$ exchange rate pays €651.25 at maturity per €1000
651.25/1000= 1/x
Cross multiply
651.25x = 1000
x= 1000/651.25
x= 1.54
Hence the implicit exchange rate is €1.54/$1.00
Answer:
Final value= $242,726.24
Explanation:
Giving the following information:
The U.S. stock market has returned an average of about 9% per year since 1900.
This return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year.
If you invest $100,000 and you earn 6% a year on it for 30 years.
We know inflation is 3% (average), so our real interest rate is approximately 3%.
We need the final value formula:
FV= PV*(1+i)^n
FV= 100000*(1.03)^30= $242,726.24
Answer:
Economies of scale
Explanation:
Economies of scale is described as the cost benefit or advantage which is experienced through the firm, when it rises the output level. Under economies of scale, the fixed costs did not vary or change with decreases or increases in the units of the production volume and the variable costs are dependent with rise in the output.
So, in this case, when the circumference is doubled of the oil pipeline, more than the volume doubles. This technique is selected through the large firms or business as it will result in the economies of scale.
Answer:
The main economic benefit that debt rescheduling has for developing countries is that it changes principal and interest payments to more favorable conditions.
This means that after the reschedule, developing countries will have to put less resources into the payments of public debt, which allows them to have more resources available for other public investments like education, healthcare, and infraestructure.
Answer:
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