Question 22pinaverBNP Paribas has 800 depositors. Each depositor deposits $1,000 into the bank at t-0. BNP Paribas offers its depositors an interest rate. NP then uses the deposits to make 2 yearsimple loans at an interest rate of B Depositors of BNP Paribas can either withdraw their deposits at t1 or t-2. At t1, BNP can sell its loans at the initial loan values, if neededAssume that each depositor believes that there are a total of X number of depositors who will withdrew at t. Let k be the cutuff such that if X>. the bark fal and ifXk the benkdoes not fail. What is the value ofk? Round your answer to at least 2 decimal places

An interest rate refers to the amount charged by a lender to a borrower for any form of debt. It is…

BNP Paribas has 800 depositors. Each depositor deposits $1,000 ino the berk ENP Parbas offers s depostors an erestte NP then uses the deposis make 2 year simple loens at an interest rate of . Depositors of BNP Parbas can either withdrantheir deposits at or t2 Act NP sell s loans the inisal loan values, freed Assume thateach depositor believes that there are a total of X number of depositors who will hdrew tLetk be the cufsuch that X>khe bank fails and f X

BNP Paribas has 800 depositors. Each depositor deposits $1,000 ino the berk ENP Parbas offers s depostors an erestte NP then uses the deposis make 2 year simple loens at an interest rate of . Depositors of BNP Parbas can either withdrantheir deposits at or t2 Act NP sell s loans the inisal loan values, freed Assume thateach depositor believes that there are a total of X number of depositors who will hdrew tLetk be the cufsuch that X>khe bank fails and f X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: rm a issues a bond today it will pay $100,000 on the bond which includes 3% interest in one year how…

A: The bond Price after one year is $100,000 which includes a 3% interest rate. Assume at the present…

Q: PLS HELP ASAP ON BOTH

A: SOLUTION 1 :The best advice for Harry to defer paying taxes on capital gains would be:c. He should…

Q: Pfd Company has debt with a yield to maturity of 6.2%, a cost of equity of 14.4%, and a cost of…

A: Formula for WACC (weighted average cost of capital) is given as: = (weightage of equity*cost of…

Q: analyse along with graph because of rental crisis how the demand and supply affects the pricing and…

A: To analyze how the rental crisis in Australia affects demand, supply, pricing, and investment…

Q: 3. The ABC exporting Company quoted a price USD 800 M/T CIFC2% Mumbay. If the freight costs is USD…

A: Products made in one country and purchased by citizens of another are considered exports. When local…

Q: Given the following table: Q TFC TVC 0 30 1 2 32 4 S 6 7 co 8 30 30 30 30 55 85 30 125 30 30 30 o…

A: A revenue schedule is a table or graph that shows the expected income or revenue generated by a…

Q: your home is S250000, but the replacement cost of the structure is $190000, how much homeowner's…

A: 1. Replacement cost is attached to your home insurance inclusion. Perhaps the main thing to realize…

Q: PLS HELP ASAP ON BOTH

A: References: El Baz, J., & Ruel, S. (2021). Can supply chain risk management practices mitigate…

Q: K Uncoventional monetary policy: financial policy and quantitative easing Suppose that the IS and LM…

A: Given information IS function: Y=C*(Y-T)+I*(Y, r+x)+G LM: r=r* C= consumption Y= income level Y= tax…

Q: Stock Shares Stock Price A 9,500 $ 91 B 33,000 20 C 10,000 75 D 68,000 13 If there are 57,000 shares…

A: Step 1: The calculation of the NAV ABCD1StockSharesStock PriceInvestment2A9500 $ 91.00 $…

Q: I need answer typing clear urjent no chatgpt used i will give upvotes

A: Step 1: UDL is replaced by a point force equal to its area that acts at the centroid of the…

Q: SOLVE STEP BY STEP IN DIGITAL FORMAT Price (P) 20 30 40 50 60 QD Qo 160 80 Deficit = 80 140 100 De…

A: Demand and supply are the two market forces that determine the price and output level where…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: A building worth $100,000 is insured for $60,000 under a policy with an 80% co-insurance clause.…

A: Insurance is defined as the reimbursement of losses. It is provided by an insurance company where…

Q: 1. Zaggy Zargawhoop has an idea for a new business. In order to develop his idea, he needs to invest…

A: Savings basically refers to the process of setting aside a portion of one's current income for…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the following coupon bond issued by XYZ.inc Term: 7 yearPayment: 175Face Value: 500 Currently the prevailing risk free rate is 0.04 and the market places a risk premium on XYZ.inc bonds of 0.05 Compute the Yield to Maturity of this bond.
4. Determine the probability that the following tree reflecting a stock ivestement has a rate of return higher than 7% per year. There is a 40% chance they will keep the stock 3 years and 60% they will keep it 5 years. PeoB SEu FUR : A HOLD FOR 30% 4 30 () 432 20% $40 4 25 Poe 425 Se 手41 $ 50
PLS HELP ASAP ON BOTH
1. BPI is exposed to the ff. risks Foreign exhange rate Debtors' ability to pay Interest rate movement Household consumption level High ratio of older personnel or management during COVID Number of labor force who were layoff during the period The level of exposure of this bank to 3 other systematic factors are 0.50, 0.65, and 0.70 with each factor change data of 5%, 3.5%, and 1.5%, respectively. This is a blue-chip company which is included in the PSEi and a reasonable assessment of its market sensitivity is 1.38. The government on-the-run bond has interest earnings of 3.8% and PSEi return is 7.8% a. With the listed risks, identify the systematic risks from unsystematic risks. b. USing the identified systematic risks calculate the expected return of BPI stock…
A commercial bank has capital of 5000 and a leverage ratio of 10. If the value of the banks assets increase by 5% then it's capital has to
A firm is considering purchasing equipment to manufacture a new product. The equipment will cost $3M, and expected net cash inflowsare $0.35M indefinitely. If market demand for theproduct is low, then over the next five years thefirm will have the option of discarding the equipment on a secondary market for $2.2M. Assume thatMARR = 12%, s = 50%, and r = 6%. What isthe value of this investment opportunity for the firm?
PLS HELP ASAP ON BOTH