Answer:
Current yield=5.6%
Explanation:
<em>The current yield is the proportion of the current price of a bond earned as annual interest payment.</em>
<em>Current yield = annual interest payment/bond price</em>
<em>Annual interest payment = coupon rate × face value</em>
= 5.44% × $2000
= $108.8
Current yield
= annual interest payment/price
= $(108.8/1,930.36) × 100
= 5.6%
Note we used the annual interest payment nothwithstanding that interests are paid semi-annually
<span>to obtain a product from another country </span>
Answer:
A. To keep banks with falling asset values solvent.
Explanation:
When a bank is failing it will result in loss of funds not only for the bank but also for customers that have accounts in these banks.
If a bank eventually closes operations as a result of insolvency, they will not be able to pay off the customers. That is where the deposit insurance comes in to settle customers.
The government will have to spend a lot of money reimbursing customers their money.
To avoid this the federal government ensures the capital of banks is maintained to keep banks with falling asset values solvent.
Answer:
A. $ 1.800
Explanation:
The total manufacturing costs for the period are:
Raw materials $ 3,000
Labor $ 4.000
Overhead costs <u>$ 2,000</u>
Total cost of goods manufactured <u>$ 9,000</u>
Units started and completed 10,000
Cost per unit $ 9,000 / 10,000 units $ 0.90 per unit
Units inventory at end of period 2,000
Inventory value at period end $ 0.90 * 2,000 = $ 1,800
Answer:
(1) Short run - (A)
(2) Immediate run - (B)
(3) Long run - (C)
In a short run, all the changes occur in an economy are for shorter time period and buyers have little time to respond to these changes. Hence, the demand curve is elastic in nature.
In an immediate run, there will be no time for the consumers to respond to the changes occur in an economy. Suppose there is an increase in the prices of the goods, as a result there will no changes occur in the quantity demanded. Hence, the demand curve is inelastic, means that there is no effect on quantity demanded.
In a long run, there is enough or more than enough time for the consumers to respond to the changes. Hence, the demand curve is elastic in nature.