Given that the inflation rate in 2006 was about 3.24%, while a short-term municipal bond offered a rate of 2.9%, which of the following statements is correct? a. the real interest rate for investors in these bonds was > the rate of inflation. b. investors in these bonds were able to buy less at the end of the year than they could have purchased at the start of the year. c. the purchasing power of investors in these bonds grew over the course of the year. d. the nominal interest rate offered by these bonds gave the true increase in purchasing power that resulted from investing in these bonds.
Answers: 1
Business, 22.06.2019 16:50, taylorb9893
According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures donβt perform well in any environment (d) the passing of time provides stability and predictability for businesses
Answers: 2
Business, 22.06.2019 18:00, Aethis
Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan
Answers: 2
Given that the inflation rate in 2006 was about 3.24%, while a short-term municipal bond offered a r...
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