Your uncle fred just purchased a new boat. he brags to you about the low 6.9 % interest rate (apr, monthly compounding) he obtained from the dealer. the rate is even lower than the rate he could have obtained on his home equity loan (7.9 % apr, monthly compounding). but if his tax rate is 27 % and the interest on the home equity loan is tax deductible, which loan is truly cheaper?

To make a profit while benefiting humanity is an example of a mission statement that what

Assume that the following conditions exist: a. all banks are fully loaned up- there are no excess reserves, and desired excess reserves are always zero. b. the money multiplier is 5 .     c. the planned investment schedule is such that at a 4 percent rate of interest, investment =$1450 billion. at 5 percent, investment is $1420 billion. d. the investment multiplier is 3 . e.. the initial equilibrium level of real gdp is $12 trillion. f. the equilibrium rate of interest is 4 percent now the fed engages in contractionary monetary policy. it sells $1 billion worth of bonds, which reduces the money supply, which in turn raises the market rate of interest by 1 percentage point. calculate the decrease in money supply after fed's sale of bonds: $nothing billion.

Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?