a difference between the interest rates on AAA corporate bonds and U.S. Treasury notes? 3. Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50‚000 in ten years or an annuity of $8‚000 for ten years. Which is worth more now‚ if the discount rate is (a) 6% (b) 19%? 4. Suppose you open a saving account with $1‚800 earned in a summer job. The account’s stated interest rate is 11%. Calculate effective annual rate (EAR) if interest is paid (a) semiannually
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BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES BUSINESS IMPLICATIONS OF EXCHANGE-RATE CHANGES Market Decisions On the marketing side‚ exchange rates can affect demand for a company’s products at home and abroad. A country such as Mexico may force down the value of its currency if its exports become too expensive owing to relatively high inflation. Even though inflation would cause the peso value of the Mexican products to rise‚ the devaluation means that it takes less foreign currency to
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WHAT INFLUENCES ONLINE CLASSES HIGH ATTRITION RATE by Lora Hines Bachelor of Science in Business Education December 1984 College of Education A Research Paper Submitted in Partial Fulfillment of the Requirements for the Master of Science in Education Degree Department of Workforce Education and Development In the Graduate School Southern Illinois University – Carbondale December 1‚ 2011 TABLE OF CONTENTS Chapter Page
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term structure of interest rate we need to elaborate how interest rates function and how they are determined. Interest rates are a vital tool to all the macro-economic policy objectives of a government such as control of inflation‚ investment as well as employment. Interest rates refer to the price paid by deficit agents for borrowing funds from the surplus agents. A line that plots interest rate at a set point in time is the term structure or yield curve. Interest rates which may be short term or
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1) A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. 2) An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? 3) Which of the following investments has a larger future value? A $100 investment
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influence on the proximate variables in attempting to achieve a desired fertility rate If follows that if the cost of living and the cost of having children limits family size‚ then government policies towards taxation and family welfare are also significant influences on how many children a couple will have. Such government policies generally include family planning programmes‚ financial incentives to control/increase family size‚ and the provision of health care facilities. Governments can adopt
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The term structure of interest rates‚ also known as the yield curve‚ is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates of benchmark fixed-income securities‚ the yield curve is a measure of the market’s expectations of future interest rates given the current market conditions. Treasuries‚ issued by the federal government‚ are considered risk-free‚ and as such‚ their yields are often used as the benchmarks for fixed-income securities
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Exchange rate development in Ethiopia Monetary Development The legal tender currency of Ethiopia was issued on 23 July 1945 by defining the monetary unit as the Ethiopia dollar (E$) with a value of 5.52 grains (equivalent to 0.355745 grams) of fine gold. The linkage with fine gold was in accord with the monetary system established by the Bretton Woods Agreement of 1944. For the five years following the proclamation of the national currency (1945–1950)‚ money supply of the country was determined
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Absorption to Activation Energy Calculating the rate constants‚ half-lives‚ and activation of a reaction by monitoring the change in absorption Department of Chemistry Dusten Dussex Lab partner: John Drury Lab date: February 7th‚ 2013 Due date: February 21st‚ 2013 Introduction In this experiment we are analyzing the relationship between reaction rates at different concentrations and temperatures to determine the true rate constant‚ activation energy‚ reaction orders‚ and half-life
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on cardiovascular functions such as pulse rate‚ pulse lag‚ the PT interval‚ the TP interval‚ systolic‚ and diastolic blood pressure is noticeable after running down the steps of Long Hall and back up to the third floor. As Table 1 shows‚ the data support the initial hypothesis that the pulse rate will increase‚ the pulse lag will decrease‚ both the PT and TP intervals will decrease‚ and the systolic and diastolic blood pressure will increase. The pulse rate mean before exercise was about 78 beats per
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