In this instance, the MAD value of the 3-month moving average is less than that of the 12-month moving average. Therefore, the 3-month moving average forecasting method yields the best results.
Forecasts using a 3-month moving average:
How to calculate the moving average in Excel, step-by-step:
Rates data should be entered into an Excel sheet.Access DataThen select Data Analysis.Click "Moving Average" and then "OK."Choose the rates column under "Input Range."Type 3 for Interval.Click "OK."Excel Result:
Rate(Actual) forecast Error = (Actual − Forecast)
7.7 #N/A
8.4 #N/A
8.6 8.233333 0.366667
8.8 8.6 0.2
9.2 8.866667 0.333333
9.4 9.133333 0.266667
9.4 9.333333 0.066667
9.7 9.5 0.2
9.8 9.633333 0.166667
9.9 9.8 0.1
9.9 9.866667 0.033333
9.7 9.833333 0.133333
9.8 9.8 0
9.9 9.8 0.1
9.8 9.833333 0.033333
10.1 9.933333 0.166667
9.7 9.866667 0.166667
9.6 9.8 0.2
9.7 9.666667 0.033333
9.6 9.633333 0.033333
9.6 9.633333 0.033333
9.4 9.533333 0.133333
9.7 9.566667 0.133333
9.1 9.4 0.3
8.9 9.233333 0.333333
8.8 8.933333 0.133333
8.9 8.866667 0.033333
9.1 8.933333 0.166667
9.2 9.066667 0.133333
9.1 9.133333 0.033333
9.2 9.166667 0.033333
8.9 9.066667 0.166667
9.1 9.066667 0.033333
8.7 8.9 0.2
8.4 8.733333 0.333333
8.4 8.5 0.1
8.4 8.4 0
8.2 8.333333 0.133333
8.1 8.233333 0.133333
8.1 8.133333 0.033333
8.3 8.166667 0.133333
8.1 8.166667 0.066667
8.4 8.266667 0.133333
8.3 8.266667 0.033333
7.8 8.166667 0.366667
7.8 7.966667 0.166667
7.8 7.8 0
7.9 7.833333 0.066667
∑Error = 6.166667
Therefore, MAD = ∑Error / Number of Errors
MAD = 6.166667 / 40 = 0.134
Forecasts using a 12-month moving average:
How to calculate the moving average in Excel, step-by-step:
Rates data should be entered into an Excel sheet.Access DataThen select Data Analysis.Click "Moving Average" and then "OK."Choose the rates column under "Input Range."Enter 12 for Interval.Click "OK."Excel Result:
Rate(Actual) forecast Error = (Actual − Forecast)
7.7 #N/A
8.4 #N/A
8.6 #N/A
8.8 #N/A
9.2 #N/A
9.4 #N/A
9.4 #N/A
9.7 #N/A
9.8 #N/A
9.9 #N/A
9.9 #N/A
9.7 9.208333 0.491667
9.8 9.383333 0.416667
9.9 9.508333 0.391667
9.8 9.608333 0.191667
10.1 9.716667 0.383333
9.7 9.758333 0.058333
9.6 9.775 0.175
9.7 9.8 0.1
9.6 9.791667 0.191667
9.6 9.775 0.175
9.4 9.733333 0.333333
9.7 9.716667 0.016667
9.1 9.666667 0.566667
8.9 9.591667 0.691667
8.8 9.5 0.7
8.9 9.425 0.525
9.1 9.341667 0.241667
9.2 9.3 0.1
9.1 9.258333 0.158333
9.2 9.216667 0.016667
8.9 9.158333 0.258333
9.1 9.116667 0.016667
8.7 9.058333 0.358333
8.4 8.95 0.55
8.4 8.891667 0.491667
8.4 8.85 0.45
8.2 8.8 0.6
8.1 8.733333 0.633333
8.1 8.65 0.55
8.3 8.575 0.275
8.1 8.491667 0.391667
8.4 8.425 0.025
8.3 8.375 0.075
7.8 8.266667 0.466667
7.8 8.191667 0.391667
7.8 8.141667 0.341667
7.9 8.1 0.2
∑Error = 12
Therefore, MAD = ∑Error / Number of Errors
MAD = 12 / 37 = 0.324
In this case, the 3-month moving average's MAD value is lower than the 12-month moving average's MAD value. Consequently, the 3-month moving average forecasting approach produces the greatest outcomes.
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a game in which each player has a dominant strategy, and when each plays it, the resulting payoffs are smaller than if each had played a dominated strategy is called a(n) .
A game in which each player has a dominant strategy, and when each plays it, the resulting payoffs are smaller than if each had played a dominated strategy is called a. prisoner's dilemma.
A prisoner's dilemma is a scenario in which individual decision-makers have an incentive to make choices that result in a suboptimal outcome for the individuals as a group. Many elements of the economy are affected by the prisoner's dilemma.
A prisoner's dilemma is a circumstance in which two selfish actors, according to game theory, would ultimately result in a poor option for both. The prisoner's dilemma further demonstrates that simple collaboration is not always advantageous.
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use the data in the table to answer the question. labor force unemployed frictional structural cyclical 260,000 44,000 23,000 12,000 9,000 calculate the natural rate of unemployment. enter your answer as a percentage rounded to two decimal places.
33.85% natural unemployment rate The frictional and structural unemployment in the economy are added to determine the natural rate of unemployment.
Natural unemployment rate
23, 000+44,000+9000 + 12, 000/260,000
88000/260, 000
0.3385
0.3385× 100 .
33.85
33.85% natural unemployment rate
The level of output in this economy is not at full employment.
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true or false: assuming implicit costs are positive, each of the firms operating in this industry in the long run earns positive accounting profit.
False, assuming implicit costs are positive, each of the firms operating in this industry, in the long run, earns positive accounting profit.
industry: a collective of profitable businesses or establishments that create or provide products, services, or sources of income. industry are typically categorized in economics as primary, secondary, tertiary, and quaternary; secondary industries are additionally categorized as heavy and light. Obtaining raw materials involves primary industries like mining, agriculture, and fishing. A profit is an income that is given to the owner in an efficient market production process in accounting. The owner's primary interest in the income-formation process of market production is profit, which is a measure of profitability. Different profit metrics are frequently employed. The equation Total Revenue - Total Expenses = Profit makes calculating profit simple.
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what's the price at which a willing buyer and a willing seller would strike a deal given normal market conditions?
The price at which a willing buyer and a willing seller would strike a deal given normal market conditions is fair market value.
The price at which a willing seller and willing buyer, neither of whom is under any obligation to buy or sell, and both of whom have reasonable awareness of material facts, would exchange the property is its fair market value.
Market value or evaluated value are not the same as fair market value. Instead, it represents the worth a piece of property would have if a willing seller agreed to sell it to a willing buyer at a specific time. There are a few restrictions, specifically:
The parties involved are all operating in their own interests and neither the buyer nor the seller are under any pressure to complete the transaction.
Both the buyer and the seller are fully informed about the property (nothing is hidden or withheld).
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Your organization’s network has multiple layers of security devices. When you attempt to connect to a service on the internet. However, you receive a security message from the operating system stating that this service is blocked on your workstation. What could be the probable cause?.
A security message from the operating system stating that this service is blocked on your workstation results due to the probable cause of the host-based firewall settings are blocking the service.
A firewall is security software that functions primarily to stop any unauthorized access to a service. The host of a company might use a firewall in order to block those services that can be a threat to the company or that might be blocked for maintaining privacy.
An organization that has many computers in the work setup tends to use a firewall for blocking any service that is a threat to the company. If a firewall is not used, then there is a security risk.
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the amount of money that the borrower receives at the time a discounted note is made is known as the numerator
False. The numerator of a discounted note is not the sum of money that the borrower receives at the time it is issued.
A discounted note is what?Any short-term debt obligation that is issued at a discount from par is known as a discount note. Discount notes, which resemble zero-coupon bonds and Treasury bills (T-Bills), are typically issued by government-sponsored organizations or borrowers with strong credit ratings.
Up to one year is the maximum maturity period for discount notes. Investors are not given periodic interest payments with discount notes. Instead, investors buy discount notes at a reduced cost and receive the full face value (also known as "par value") of the note when it matures.
Discount notes are fixed-income securities that don't pay interest while they're outstanding. The notes are sold at a discount to par because investors do not receive the additional benefit of recurring interest income.
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organizational change can often lead to improved performance if successful, yet many times change efforts might fail. what is the leading reason that change efforts fail? responses
Organizational change is the process through which a firm or business changes a key aspect of its structure, such as its culture, the operational infrastructure or supporting technology, or its internal procedures.Organizational change should be adaptive, the process of directing organizational change to a successful conclusion by making it adaptive is known as organizational change management, and it generally consists of three main phases: preparation, implementation, and follow-through. Common Reasons Organizational Change Fails :
1. Poor Planning Sets Up Organizational Change for Failure
2. Inadequate Support from Leadership
3. Lack of Resources
4. Priority Focus on Systems vs. People
5. Inadequate Change Leadership Skills
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using the allowance method, which is the correct adjusting journal entry to record bad debt expense? multiple choice question. debit bad debt expense and credit accounts receivable debit allowance for bad debt expense and credit bad debt expense debit bad debt expense and credit allowance for doubtful accounts debit bad debt expense and credit sales revenue
Using the allowance method, debit bad debt expense and credit allowance for doubtful accounts is the correct adjusting journal entry to record bad debt expense.
Debt is a responsibility that requires one birthday party, the debtor, to pay cash or other agreed-upon value to any other birthday celebration, the creditor. Debt is a deferred charge, or collection of bills, which differentiates it from a direct purchase.
Debt may be truly understood as the quantity owed by means of the borrower to the lender. Debt is the amount of money that is borrowed for a sure time period and is to be returned alongside the interest. the quantity in addition to the approval of the debt depends upon the creditworthiness of the borrower.
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. a toyota tundra can be purchased today for $32,350. a civil engineering firm is going to need three more trucks in 2 years because of a land development contract it just won. if the price of the truck increases exactly in accordance with an estimated inflation rate of 3.5% per year, determine how much the three trucks will cost in 2 years.
Toyota tundra can be purchased today for $32,350. an estimated inflation rate of 3.5% per year, the three trucks will cost 2 years = $103,962.
The rate of price growth over a specific time period is referred to as inflation. Inflation is frequently measured broadly, such as the general rise in prices or the rise in the cost of living in a nation. Unevenly rising prices in an inflationary environment inevitably lower some consumers' purchasing power, and this erosion of real income is the single biggest cost of inflation. With its headquarters in Toyota City, Aichi, Japan, Toyota Motor Corporation is a multinational Japanese automaker. On August 28, 1937, it was incorporated and Kiichiro Toyoda founded it. With an annual production rate of about 10 million vehicles, Toyota is one of the biggest automakers in the world.
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do you think the company is doing enough to limit the well-known risks and costs associated with high expatriate failure rates? is there anything else it might do?
The company is doing enough to limit the well known risk and costs associated with high expatriate failure rate.
Failure rate:
Failure rate refers the frequency with which an engineered system or component fails, expressed in failures per unit of time.
Given,
Here we need to find that the company is doing enough to limit the well-known risks and costs associated with high expatriate failure rates.
Here we think that the company is doing good enough and using their human resources fullest capacity to find potential prospects/managers to be able to successful in their host countries.
And they only select potential prospects/managers that have the ability to work cross functionally internationally/domestically and able to manage while abroad.
So, once the employee is overseas, they help with the expenses such as child’s school tuition, tax equalization, cultural training, and subsidized housing.
Then they will also increase their salaries from two to four times the employee’s salary.
Through this they also make sure that once they completed their overseas task, they are able to come back and readjusting to their old life after extended time in different culture.
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What term best refers to the value of all nations' economies functioning as a large, increasingly synchronized, global financial system?
Question 5 options:
protectionism
global economy
free trade
domestics
The term that best refers to the economies of all nations existing as an increasingly synchronized, global financial system, is global economy.
What is the global economy?As times have passed, the world's nations have become increasingly integrated in what is called globalization. This integration has happened in various ways such as financial, social, and economically.
As a result, the term, "global economy" was coined to reflect the fact that the global financial and economic system are not more synchronized and therefore affect each other both negatively and positively.
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which phase of the customer life cycle categorizes customers according to value and attempt to win back high-value customers? which phase of the customer life cycle categorizes customers according to value and attempt to win back high-value customers? relationship management customer sponsorship customer acquisition loss/churn marketing
An organization classifies its customers according to value at the (c) customer acquisition phase of the customer life cycle and makes measures to retain high-value clients.
When a customer is familiar with your brand and its content, it's time to take things a step further by providing self-service resources that cover every facet of your product. Giving potential purchasers as much information as you can make their lives easier. They won't need to contact your customer support representatives as often, and it will assist them in making an informed buying decision.
You might create a knowledge base, for instance, which is a complete online repository made available by your company and contains in-depth information on the uses of your products and services as well as solutions to frequently asked problems.
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How does the punishment for late payment of student loans differ between Federal and private loans?
Federal student loans and federal parent loans: the federal government funds these loans. Private student loans: These loans are confederal loans.
What is a loan?In finance, a loan is the lending of money by one or more someone, social group, or other entities to other individualists, organizations, etc. The recipient receives a debt and is usually liable to pay interest on that debt.
The federal government funds these loans. Buck private student loans: These loans are confederal loans, made by an investor such as a bank, credit union, state agency, or school.
Therefore, loans are confederal loans for Federal student loans and federal parent loans
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g apr on a loan is 6% compounded quarterly the effective annual rate is the borrower paying? what is compounded monthly
6.17 percent As an illustration, an effective interest rate of 6.17 percent corresponds to a nominal interest rate of 6% compounded monthly.
How is effective annual compounded quarterly calculated?The calculations and formula are as follows: The effective annual interest rate is (1 minus the nominal rate multiplied by the number of compounding periods) minus 1.This is what investment A would be:10.47% = (1 + (10% ÷ 12)) ^ 12 - 1.
Which is superior, monthly or annual compounding?However, compounding typically results in a higher annual interest rate. The amount invested grows for twelve months rather than monthly. But if you can get the same interest rate for monthly payments as for annual payments, take advantage of it.
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hotel dreamlandia has a unique concept, with all the hotels having exactly 250 rooms and the same layout for all of its 200 locations that are spread out equally around the globe. hotel dreamlandia is likely using:
Hotel Dreamlandia has a unique concept, with all the hotels having exactly 250 rooms and the same layout for all of its 200 locations. Hotel Dreamlandia is likely using Undifferentiated Marketing.
Undifferentiated Marketing is employed by businesses that make items for everyday usage. This approach allows you to design campaigns without conducting extensive market research to learn what your target audience wants and needs. As many individuals as possible are to be influenced and reached by the plan. Marketers employ radio, TV, and newspapers as platforms for product marketing in order to accomplish this aim. As a consequence, the corporation makes the product more widely known, which has a direct impact on the volume of sales and overall income.
For commonly consumed goods like gasoline, soft drinks, dairy products, bread, personal hygiene products, etc., this strategy makes the most sense. Due to the constant evolution of consumer values, attitudes, and behavior, businesses that sell these products should always keep an eye on it.
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standardized, reusable containers have fairly obvious benefits for shipping. what is the purpose of these devices within the plant?
The purpose of these devices within the plant is that specific amounts are frequently protected using standardized containers.
Additionally, they result in less wasteful space and weight, as well as less labor-intensive packing, unpacking, and preparation. Reduced labor costs: standardized reusable components provide a constant production flow, enhancing labor productivity. Better protection for items in transportation is provided by sturdy containers, which leads to reduced damage and loss and safer handling.
Numerous advantages come with reusable containers. They not only are made to specifically protect the products they contain, but they also save money and produce less waste, all of which help advance sustainability. Some industries, like those in the food and beverage industry, especially the dairy industry, and the automotive sector, rely on reusable containers, but the advantages can only be realized when the containers are used properly.
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ou would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. how much would you need to have saved in your retirement fund to achieve this goal? (assume that the perpetuity payments start one year from the date of your retirement. the annual interest rate is 8 percent.)
You need to have saved $1,000,000 in your retirement fund to achieve this goal.
In the field of finance, a security that generates an endless supply of cash is known as perpetuity. It functions as a kind of perpetual annuity. The quantity of the regular cash flows is simply divided by the discount rate to get the present value of a perpetuity.
Calculate how much would need to be saved in your retirement account for you to reach this objective.
We will use the perpetuity equation,
PV=C/r
Where, C=Perpetuity after retirement
r=Annual interest rate
Now, put the values in the formula,
PV = (80,000/0.08)
PV= $1,000,000
Therefore, $1,000,000 in retirement savings would be required for you to reach this goal.
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Identify Karla’s job based on the given scenario.
Karla is a sales manager. She uses a system that streamlines sales tasks such as information sharing, and order tracking. This system helps track the success of her on-floor sales personnel. She uses sales force _____
The given scenario is related to salesforce. Since it is technological world, "Salesforce is the software" which is used to track sales, get in touch with the customer easily, stay connected with various stakeholders of the organization.
What is Salesforce?The term "Salesforce" is connected to two items. Salesforce generally refers to keeping track of sales and evaluating their performance so that we can estimate the organization's future budget, revenue, and rate of expansion. Since we live in a technological age, "Salesforce is the software" that is used to monitor sales, communicate with customers quickly, and maintain relationships with many organizational stakeholders. It can also remove the barrier to getting products across geographic boundaries. San Francisco, California-based Salesforce, Inc. is a company that sells cloud-based software in the United States. The company's customer relationship management software and apps are primarily focused on sales, customer service, marketing automation, analytics, and application development.To learn more about Salesforce refer to:
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The lecture on film genre described the hollywood system of film genres as offering both ________ and _______.
The lecture on film genre described the hollywood system of film genres as offering both Representation and position.
The purpose, tone, and some of characteristics the classification criteria that are taken into account.Drama, comedy, and action are asmall number of the movie’s genre. In action movies, it typically entails an automobile chase and a struggle with weapons. For humour, it entails characters that are humorous hilarious gestures or sentences. Drama entails weeping and crying in plenty.It is best to contrast the documentary from every other moment, taking into account how Schrader’s formulation phase was implemented for both the traditional and current black senses. The 1944 film “Double payment” by Billy Wilder looks to be the key black text of the cinematography age.
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if the current interest rate is 5 percent, what will be the equilibrium interest rate if the money supply falls by $100 billion dollars?
The short-term real interest rate that, in, is the equilibrium real interest rate (r).in the long run, is consistent with potential inflation and stable aggregate production.
In the money market, how is the equilibrium rate of interest established?The interest rate at which the amount of money demanded and the amount of money provided reaches equilibrium in the money market.If nothing else changes, a change in money supply or demand will change the equilibrium interest rate, which will change the level of real GDP and prices.
If the money supply grows, what will happen to the equilibrium rate of interest?The relationship between interest rates and a nation's money supply is inverse. As a result, if a nation's economy has a higher money supply, interest rates should be lower.
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illcrest co. sold $500 of merchandise on a bank credit card with a 5% fee. the entry to record this sales transaction would include debit(s) to: multiple choice question.
The sum owing to a business for products or services that have been delivered or used but have not yet been paid for by clients is referred to as accounts receivable (AR). The debt to cash entrance into the record sales would be 970 dollars.
The percentage Is a value that has been multiplied by 100. In this manner, expressing 25% of a value is equivalent to expressing 25% out of 100, or 25% divided by 100. Simply multiply the total by the percentage to determine the precise number of absentees from the event. So: 160 x 25% = 160 (25/100) = 160 x\s0.25 = 40 This is so that the cash sum received will be equal to the sales values multiplied by one less the credit card fee.The amount of debt to cash that would be used to pay for the record sales would be 1000 x (1-0,03) 1000 x 0,97 = 970$.
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g if a country's lorenz curve fell on the 45* line: question 6 options: a) it would mean the country's income was distributed equally across the population. b) it would mean that the country's income was perfectly unequal with one person earning everything and everyone else nothing. c) its gini coefficient would be 10, the highest possible number. d) it would be the most morally advanced country in the world, because all moral systems demand income equality as the goal.
If a country's lorenz curve fell on the 45* line than it would mean the country's income was distributed equally across the population.
The Lorenz curve is a graph used in economics to show how wealth or income is distributed. Max O. Lorenz created it in 1905 to symbolise the unequal distribution of wealth.
A straight diagonal line is used to illustrate the Lorenz curve; underneath it is the Lorenz curve, which depicts an estimated distribution of wealth or income. The Gini coefficient is the region that is in between the straight and curved lines. The scalar measurement of inequality is represented by the Gini Coefficient itself. The ratio of the area under the straight line serves as the Lorenz Curve's expression for the Gini Coefficient.
Uneven wealth distribution and economic inequality are both represented by the Lorenz curve.
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in general, aversion therapy and contingency management for substance use disorders are more successful when:
Regaining a normal weight is the first goal of treatment.Anorexia cannot be overcome without regaining a healthy weight and learning how to properly eat.Participants in this process might include:Your primary care physician, who can both monitor your calorie requirements and weight gain.
When people want to get rid of stress, what are the most common things they do?
When people want to get rid of stress, the most common activity they engage in is: entertainment, such as reading, listening to music, or watching television.The following is a description of intentionally faking illness in order to achieve some external gain:malingering.
Which circumstance is most likely to result in a muscle dysmorphia diagnosis?
Body dysmorphia may be exacerbated by certain life experiences and underlying psychological factors, according to the Mayo Clinic.Muscle dysmorphia can affect men and women alike.This condition may be influenced by negative childhood experiences like being bullied or being teased about your size.
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When you consider what product to buy and what price to pay for it, you are
using which of the following processes?
Select one:
O a. the needs versus wants process
O b. the decision-making process
O c. the price versus use process
d. the resource management process
The answer is A
Explanation:
cause u are considering if u need it or not and if u buy it will u regreat it
the exchange value of a good or service (the value that an item can be exchanged for in the marketplace) is called
The exchange value of a good or service (the value that an item can be exchanged for in the marketplace) is called price.
A price is the amount of money that is (often not negatively) exchanged from one party to another in exchange for their goods or services. The cost of production may go by another name in some circumstances. If a product is classified as a "good" in a commercial exchange, its price is most likely to be referred to as such.
However, there will be alternative titles for this thing if it is a "service." For instance, the graph at the bottom will display various circumstances. Production expenses, the availability of the desired item, and consumer demand all have an impact on a good's pricing. A price may be set by a monopolist or imposed on the company by the market.
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the purchase of a car requires a $25,000 loan to be repaid in monthly installments for 4 years at 9% interest compounded monthly. if the general inflation rate is 4% compounded monthly, find the actual and constant dollar value of the 20th payment.
The actual and constant dollar value of the 20th payment is $622.13 and $582.07.
What is constant dollar value?
When comparing dollar values between periods, a constant dollar is a currency value that has been altered. The purchasing power of the dollar fluctuates over time due to inflation, hence in order to compare dollar values from one year to the next, nominal (present) dollar values must be converted to constant dollar values. Real dollar value and constant dollar value are both acceptable terms.
According to the question
P = the asset's initial purchase price
A= the annual sum that is included in the calculation,
I =the applicable interest rate, and
N=the total number of applicable time periods.
On substituting the given values to get:
A'20 = P(A/ P, i, N)
A'20 = $25,000(P/A, 0.0075, 48)
A'20 = $622.13
Therefore, the 20th cycle payment for the car loan is approximately $622.13 in actual cash.
Remember that the sum in constant dollars must be calculated using the 4% inflation rate. If the real interest rate is applied in this case, the solution is flawed. Additionally, the actual dollar payment shown above must be entered into the variable F in this scenario:
A'20 = F(P/F, i, N)
Where,
P = the present worth of a cash flow series,
F = the future worth of a cash flow series,
i' = the invested interest rate of return, and
N = the number of time periods applicable to the situation at hand.
Putting the given values in the above equation, one gets:
A'20 = F(P / F, i, N)
A'20=$622.13(P / F, 0.0033, 48)
To find the factor values. In this case, one would want to look at the second column for the other factor value applicable here(P/F, i, n).
A'20 = $622.13(P / F, 0.0033, 48)
A'20 = $622.13(0.9356)
A'20 = $582.07 20
Thus, the 20th payment in constant dollars is approximately $582.07.
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which type of writing would you most likely observe in a business report? colloquial formal conversational casual
The type of writing would most likely observe in a business report is Formal writing.
A business report is defined as a formal record that includes factual data, statistical information, research findings, or any other type of information pertinent to the duties of the position.
This report is a formal document that is short and to the point in order to communicate information in an understandable way. The majority of internal communication in a company is done through business reports.
Writing business reports requires a lot of objectivity. Whatever you say should be backed up with data and facts, not just your personal viewpoint. For instance, you might use data to demonstrate that sales were very low in the most recent quarter rather than just stating it.
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rick bought a bond when it was issued by macroflex corporation 14 years ago. the bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. interest is paid every six months; the next interest payment is scheduled for six months from today. assuming the yield on similar risk investments is 14 percent, calculate the current market value (price) of the bond.
The current market value(price) of the bond is $917.771
Life=20 years but is 14 years old
Coupon rate=10%
Discount rate=12%
FV=$1000
Price=$100*PVIFA(12%,6)+$1000*PVIF(12%,6)
=$411.140+$506.631
=$917.771
An IOU-like debt security known as a bond. Borrowers create bonds to get money from investors who are willing to lend to them for a set length of time. When you buy a bond, you are lending money to the issuer, which could be a business, an organization, a municipality, or both. The four different categories of bonds include corporate bonds, municipal bonds, government bonds, and agency bonds. Bond prices and coupon rates have an opposing relationship. Bond prices decline when interest rates increase and rise when interest rates decrease.
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whether a good is a luxury or necessity depends on the group of answer choices price of the good. preferences of the buyer. intrinsic properties of the good. scarcity of the good.
A good is a luxury or necessity depends on preference share of the buyer.
Necessity goods refer to those goods for which there is no change in demand with a chnage in the income of consumer. Example : Salt, wheat flour, medicines etc.. These goods are essential for human existence and, therefore, they occupy a higher place in the consumers' order of preference.
When the income increases the consumer buys more of luxury goods. Necessity goods cannot be postponed even if the price increases, whereas luxury goods can be postponed if its price is too high.
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In 2008, the US economy slipped into a recession. GDP dropped for two consecutive quarters, the economy experienced some deflation, and the unemployment rate rose to 7.6% in January 2009. As an economic advisor to Congress and the President, what would you suggest should be done regarding the tools of Fiscal Policy? Write a paragraph explaining how your recommendations pertaining to two fiscal policy tools would work to improve aggregate demand and increase the circular flow, while remedying the economic indicators listed above.
The tools for the fiscal policy to solve the problem for recession are spending tool and revenue tool.
Spending tool involves government spending. Government should increase its capital expenditure such as building building, roads, dams ,schools, hospitals. These spending will increase country's capital stock as it will increase the employment level and adds up to the people earning.
It will in increasing the consumption pattern in the economy and results in in increasing the aggregate demand , hence the problem of recession will be solved.
Revenue tools includes direct taxes and indirect taxes.
Government should decrease the tax rates , so that it will increase the real income of the people which will increase the consumption and aggregate demand in the economy .
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