The demand curve and supply curve for one-year discount bonds with a face value of $1,030 are represented by the following equations:Bd:Price = -0.6Quantity + 1,120BS:Price =Quantity + 680Suppose that, as a result of monetary policy actions, the Federal Reserve sells 90 bonds that it holds. Assume that bond demand and money demand are held constant. Which of the following statements is true?A. If the Fed increases the supply of bonds in the market by 90, at any given price, the bond supply equation will become Price = Quantity + 590.B. If the Fed decreases the supply of bonds in the market by 90, at any given price, the bond supply equation will become Price = Quantity + 810.%3DC. If the Fed increases the supply of bonds in the market by 90, at any given price, the bond supply equation will become Price = Quantity + 770.%3DD. If the Fed decreases the supply of bonds in the market by 90, at any given price, the bond supply equation will become Price = Quantity + 750.Calculate the effect on the equilibrium interest rate in this market, as a result of the Federal Reserve action.The expected interest rate on a one-year discount bond willto %. (Round your intermediate calculations to the nearest whole number. Round your final answer to two decimal places.)

Answered: Image /qna-images/answer/ac201247-af78-4c43-a4f1-79a75113631a.jpg

Answered: The demand curve and supply curve for…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Straight-line DepreciationBook value is the value of an asset that a company uses to create its balance sheet.Some companies depreciate their assets using straight-line depreciation so that thevalue of the asset declines by a fixed amount each year. The amount of the declinedepends on the useful life that the company assigns to the asset. Suppose that acompany just purchased a fleet of new cars for its sales force at a cost of $31,500 percar. The company chooses to depreciate each vehicle using the straight-line methodover 7 years. This means that each car will depreciate by +31,500 7 = +4500 per year.(a) Write a linear function that expresses the book value V of each car as a functionof its age, x.(b) Graph the linear function.(c) What is the book value of each car after 3 years?(d) Interpret the slope.(e) When will the book value of each car be $9000?[Hint: Solve the equation V1x2 = 9000.]
Consider a cash flow of payments C₁, C₂, ..., Cn at the end of years t₁, t2, ..., tn. Suppose the nominal interest rate is r = 0.04 and that interest is compounded monthly. Tick all those statements that are correct. O a. The convexity is the same as the duration squared in this case. 300 O b. The effective duration is equal to 301 times the duration in this case. The effective duration is equal to 25 times the duration in this case. 26 Od. The duration and the effective duration are the same for this example. O e. If all the above cash payments are the same then the effective duration is equal to the duration. O c.
On the basis of how long he has until retirement and his comfort with investment risk, Connor has decided that he wants to allocate the money in his retirement account as follows: 70% to equities, 15% to fixed income, and 15% to cash. If Connor assumes that each asset class provides the low end of the rates of return shown in the table below, what overall rate of return would he expect to earn over the long term? Asset Class Degree of Risk Historical Average Rate of Return Equities High 8% - 12% Fixed Income Moderate 4% - 7% Cash Minimal 2% - 5% Group of answer choices 4.34% 6.50% 1.43% 7.25%
Consider each of the after-tax cash flows shown in the table below. Suppose that projects B and C are mutually exclusive. Suppose also that the required service period is eight years and that the company is considering leasing comparable equipment with an annual lease expense of $3,000, payable at the end of each year for the remaining years of the required service period. Which project is a better choice at 15%? Click the icon to view the cash flows for the projects. Click the icon to view the interest factors for discrete compounding when i=15% per year. The present worth of project B is $thousand. (Round to one decimal place.) More Info Capital Single Payment Compound Amount Factor (F/P, i, N) Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) Compound Amount Factor (F/A, i, N) 1.0000 More Info Recovery Factor (A/P, i, N) 1.1500 (P/A, i, N) 1.1500 1.0000 0.8696 1.3225 2.1500 0.4651 1.6257 0.6151 B с 1.5209 3.4725 0.2880 2.2832 0.4380 - $7,000 -$5,000 1.7490…
A surfboard manufacturer lost $500,000 last year during a recession. Total revenue was $5,000,000 and total variable costs were 40% of sales. The production facility ran at 50% capacity. The production manager wants to know the following: a. What is the percent capacity required to break even? b. When the economy recovers this year, if the plant runs at 100% capacity what net income could the company realize? c. There is a possibility that sales could be so strong this year that the plant may be required to run at 120% capacity by offering a lot of overtime to its production workers. This would result in total variable costs rising by 35%. On a strictly financial basis, should the production manager plan to exceed capacity or should he advise top management to freeze production at 100% capacity? Justify your answer. Answer Solution- 9a. 58.3% 9b. $2,500,000 9c. $3,100,000
For the cash flows shown in the diagram, determine the value of x and 2x that will make the future worth in year 14 equal to $275,000. i = 10% per year 2 3 4 5 6 7 8 2x 2x 2x 2x The value of x is determined to be $ The value of 2x is determined to be $
A dealership advertises a sale price of $45 899 (including taxes) for a new truck. The salesman offers Darrel two options • Option 1: Lease o down payment of $5000 o monthly payments of $577.50 (including taxes) for 4 years o residual value of $15 000 after 4 years o allowable limit of 20 000 km/year and $0.15 for each additional kilometre Option 2: Purchase down payment of $5000 o loan with monthly payments, compounded monthly for 4 years at an annual rate of 4.9% a) Darrel estimates that he will drive 30 000 km/year. If he chooses Option 1, how much will he pay in total if he returns the truck at the end of the lease? b) What will be the total price of the truck, including the down payment, if Darrel decides to purchase it according to Option 2?
Calculate the Producers' Surplus at the indicated unit price p (in dollars) for the given supply equation. p = 100+q; p A. $15,000 B. $35,000 C. $10,000 D. $5,000 = 200
A certificate of deposit (CD) is similar to a savings account, but deposits are generally held to maturity. They usually offer higher rates than savings accounts because they "tie up" money for a period of time and often require a minimum deposit. A 3-year CD at a certain bank has a nominal rate of 2.085%, and an effective annual yield of 2.100%. If $800 is deposited with this bank, how much will be in the account at the end of the 3 years?
The following figure shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs but results in a lower monthly payment. Which best describes the lines? Total cost ($) 14000 12000- 10000- 8000 6000- 4000 2000 5 6 9 10 Months

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS