When using credit, you are giving up spending in the future to spend money now. This trade off involves costs (interest). So borrowing money from your future to buy now, will cost you more in the long run that paying cash.
Answer:
A.
Explanation:
Another name for specialization, this is when an individual focuses
on one specific skill in the field.
the answer is d. discretionary changes in government spending and taxes
Answer:
YTM is 4.94%
Explanation:
The yield to maturity is the return on the bond throughout the bond's tenure and can be computed using rate function in excel as shown below.
=rate(nper,pmt,-pv,fv)
nper is the number of coupons the bond has left to pay(23 years*2)
pmt is the semiannual coupon of the bond=$1000*5.3%*6/12=26.5
pv is the curren price=$1000*105%=$1050
fv is the face value of the bond
=rate(46,26.5,-1050,1000)=2.47%
2.47% is the semiannual yield
annual yield=2.47%
*2=4.94%
