You are an inventor and your firm has created a new agricultural technique of applying symbiotic...
ONLY answer if you KNOW it. I am really tired of wrong answers. Also, I know you are only suppose to ask one question but Ive asked these questions separately multiple times and it has been wrong (I am running out of available questions). So please attempt to answer all of them if possible. Thank you so much! 1.)2.) 2.) 3.) 4.) An open market purchase of securities by the Federal Reserve leads to a(n) _____ in the money supply,...
You want to borrow $100,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? Please show steps for full credit
I need an answer for part c and d. Thank you Suppose that currently nominal interest rates, inflation, and expected inflation are all 2% right now a)Suppose the Federal Reserve increases interest rates in the economy. Draw a well labeled supply and demand diagram that shows how they typically would do that and how it affects the supply & demand in the money market and bond market. b) Suppose that when the Federal Reserve takes this action and expected inflation...
Your financial advisor recommended that you buy some long bonds because she felt interest rates were going to decline. She pointed out that the price of those bonds would be more volatile than short bonds. She suggested $1000 par value, 40 year zero coupon bonds offered by a local utility selling at $372.43. She pointed out that the market rate of interest of 2.5% would be declining to 2% within the next 9 months based on her read of the...
It is not necessary to write detail answer, some question is easy to find answer, you dont need to explain in detail, thank you :) 7. Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess of money which will cause the interest rate to A) supply; fall- B) supply; rise- C) demand; fall- D) demand; rise- t 8. If the economy is on the LM curve, but is to...
It would be greatly appreciated if you can help to do the followings. Thanks! 1. 2. 3. 4. 5. Suppose that the liquidity effect is immediate and smaller than the other effects, and our expectations of inflation adjust quickly. Referring to the graphs on the right, choose the time path of interest rates from an increase in the growth rate of the money supply that occurs at time T." O A. GraphB O B. Graph A Interest Rate When the...
Directions: Answer the following questions. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. 1. Assume that as of today, the annualized interest rate on a three-year security is 8 percent, while the annualized interest rate on a two-year security is 6 percent. Use only this information to estimate the one year forward rate two years from now. 2. You need to choose between investing in a a one-year municipal bond...
Can you please show your work and help me understand how to get the correct answers. 5. If the nominal rate of interest is 3.2%, then what is the quarterly periodic rate of interest? . Show 2 decimals in the percentage! Don't enter the % sign. For Example answer: 9.99 Answer: 0.8 7. A perpetuity has a discount rate of 6.7% and a payment of $421.22. What is the present value of this perpetuity? Answer: 6,286.87 8. You borrow $76,810...
The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy an annual coupon bond with a coupon rate of 8.4 percent for $920. The bond has 9 years to maturity and a par value of $1,000. What rate of return do you expect to earn...
Hi, Would you show me how to solve #19 problem with ONLY using a financial calculator? Thank you very much for your time! Unchargeu. Widt " three years? In eight years? In 12 years? In 13 years? What's going on here? Illustrate your answers by graphing bond prices versus time to maturity. 19. Interest Rate Risk (LO2] Both Bond Sam and Bond Dave have 6.5 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3...