By definition, a recession is a temporary period in a business cycle wherein a decline in the economy is generally observed which causes the Gross Domestic Product or GDP to significantly drop. In addition, that would also yield to increase of unemployment rate decreasing the income of people.
Answer:
The correct answer is letter "D": interest being earned on previously-earned interest.
Explanation:
Compounding, also called "<em>interest on interest</em>", refers to a method of calculating interest based on the principal of a capital gain plus interest that was already accrued. It is a form of reinvestment based on accumulated interest. Compound interest could be computed by day, month or year.
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Answer:
B) $38.53
Explanation:
We use the PMT Formula for this question. The calculation is presented on the attachment below:
Data provided in the question
Present value = $820
Future value = $1,000
Rate of interest = 6%
NPER = 12 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the coupon payment of this bond is $38.53
