Homework Answers
a) Ans: 0.91
Explanation:
The value of Dollar = 1 / Price level = 1 / 1.10 = 0.91
b) Ans: 1.82
Explanation:
The value of Dollar = 1 / Price level = 1 / 0.55 = 1.82
Add Answer to:
Both answers are incorrect.
Suppose the price level and value of the U.S. Dollar in year...
Macroeconomics - Money, Banking, and Financial Institutions
Suppose the price level and value of the U.S. Dollar in year 1 are 1 and $1, respectively. Instructions: Round your answers to 2 decimal places.a. If the price level rises to 1.45 in year 2, what is the new value of the dollar?b. If, instead, the price level falls to 0.45, what is the value of the dollar?
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 an...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 and $215, and that data set C represents the relevant aggregate supply schedule for the economy Price Level Price Level Price Level Real GDP Real GDP Real GDP 100 215 110 110 240 290 100 100 100 240 265 240 95 95 240 240 100 265 215 100 90 240 90 290 Instructions: Enter your answers as whole...
Suppose that the one-year forward dollar price of a euro is $1.06. Further, assume that the...
Suppose that the one-year forward dollar price of a euro is $1.06. Further, assume that the spot exchange rate is $1.23 per euro, and that the interest rate on euro deposits is 10 percent. What is the interest rate on dollar deposits that would make interest parity hold? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02." Note: you may end with a number that doesn't seem "realistic" and that's OK for the purposes...
C-1. Calculate the future value of an investment of $463 for 10 years earning an interest...
C-1. Calculate the future value of an investment of $463 for 10 years earning an interest of 9% (Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. $ 1,096.11 value c-2. Would you rather have $463 now or $1,000 ten years from now? Now Ten years from now e. Assume that the average price of a new home is $158,500. If new homes are increasing at a rate of 10% per year, how much...
Can you please show your work and/or calculator steps? Problem 11-26 A 30-year maturity bond making...
Can you please show your work and/or calculator steps?
Problem 11-26 A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 10.59 years and convexity of 163.0. The bond currently sells at a yield to maturity of 9%. e-1. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Price of the...
5. Suppose you think AppX stock is going to appreciate substantially in value in the next...
5. Suppose you think AppX stock is going to appreciate
substantially in value in the next year. Say the stock’s current
price, S0, is $100, and the call option
expiring in one year has an exercise price, X, of $100 and
is selling at a price, C, of $10. With $10,000 to invest,
you are considering three alternatives:
a. Invest all $10,000 in the stock, buying 100 shares.
b. Invest all $10,000 in 1,000 options (10 contracts).
c. Buy 100...
Answer is complete but not entirely correct. PE ratio 12.37 e. What would the price and...
Answer is complete but not entirely correct. PE ratio 12.37 e. What would the price and P/E ratio be if the firm paid out all earnings as dividends? (Round your answers to 2 decimal places.) 3 Answer is complete but not entirely correct. Price PE ratio $5300 17 67 % < Prev 20 of 29 Next > DOLL Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings...
Suppose the price of a T-bill with 81 days to maturity and a $1 million dollar...
Suppose the price of a T-bill with 81 days to maturity and a $1 million dollar face value is $980,857. What is the discount yield? Answer in percent terms to 3 decimal places. Do not enter the percent sign.
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions...
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: 2016 2017 Cost Retail Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: $28,000 40,000 108,000 $ 90,000 $ 114,000 85,000 2,000 2,500 10,000 2,000 100,000 2,400 8,000 2,200 104,000 4,000 January 1, 2016 December...
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank...
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank discount ask yield of 2.6%. a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Price of the $ 4,294.45 bill b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 and $215, and that data set C represents the relevant aggregate supply schedule for the economy Price Level Price Level Price Level Real GDP Real GDP Real GDP 100 215 110 110 240 290 100 100 100 240 265 240 95 95 240 240 100 265 215 100 90 240 90 290 Instructions: Enter your answers as whole...
Suppose that the one-year forward dollar price of a euro is $1.06. Further, assume that the spot exchange rate is $1.23 per euro, and that the interest rate on euro deposits is 10 percent. What is the interest rate on dollar deposits that would make interest parity hold? Round to two decimal places. Enter a number like 2% as "2.00" and not "0.02." Note: you may end with a number that doesn't seem "realistic" and that's OK for the purposes...
C-1. Calculate the future value of an investment of $463 for 10 years earning an interest of 9% (Round your answer to 2 decimal places.) * Answer is complete but not entirely correct. $ 1,096.11 value c-2. Would you rather have $463 now or $1,000 ten years from now? Now Ten years from now e. Assume that the average price of a new home is $158,500. If new homes are increasing at a rate of 10% per year, how much...
Can you please show your work and/or calculator steps?
Problem 11-26 A 30-year maturity bond making annual coupon payments with a coupon rate of 15.3% has duration of 10.59 years and convexity of 163.0. The bond currently sells at a yield to maturity of 9%. e-1. Find the price of the bond if it's yield to maturity rises to 10%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete and correct. Price of the...
5. Suppose you think AppX stock is going to appreciate
substantially in value in the next year. Say the stock’s current
price, S0, is $100, and the call option
expiring in one year has an exercise price, X, of $100 and
is selling at a price, C, of $10. With $10,000 to invest,
you are considering three alternatives:
a. Invest all $10,000 in the stock, buying 100 shares.
b. Invest all $10,000 in 1,000 options (10 contracts).
c. Buy 100...
Answer is complete but not entirely correct. PE ratio 12.37 e. What would the price and P/E ratio be if the firm paid out all earnings as dividends? (Round your answers to 2 decimal places.) 3 Answer is complete but not entirely correct. Price PE ratio $5300 17 67 % < Prev 20 of 29 Next > DOLL Web Cites Research projects a rate of return of 20% on new projects. Management plans to plow back 30% of all earnings...
Suppose the price of a T-bill with 81 days to maturity and a $1 million dollar face value is $980,857. What is the discount yield? Answer in percent terms to 3 decimal places. Do not enter the percent sign.
On January 1, 2016, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows: 2016 2017 Cost Retail Cost Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales to customers Sales to employees (net of 20% discount) Price Index: $28,000 40,000 108,000 $ 90,000 $ 114,000 85,000 2,000 2,500 10,000 2,000 100,000 2,400 8,000 2,200 104,000 4,000 January 1, 2016 December...
A T-bill with face value $10,000 and 79 days to maturity is selling at a bank discount ask yield of 2.6%. a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Price of the $ 4,294.45 bill b. What is its bond equivalent yield? (Use 365 days a year. Do not round intermediate calculations. Round your answer to...
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