Harold Reese must choose between two bonds: Bond X pays $80 annual interest and has a market value of $855. It has 12 years to maturity. Bond Z pays $70 annual interest and has a market value of $880. It has four years to maturity. Assume the par value of the bonds is $1,000. Compute the current yield on both bonds. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

Which statement or statements are implied by equilibrium conditions of the loanable funds market? a firm borrowing in the loanable funds market invests those funds with a higher expected return than any firm that is not borrowing. investment projects which use borrowed funds are guaranteed to be profitable even after paying interest expenses. the quantity of savings is maximized, thus the quantity of investment is maximized. a loan is made at the minimum interest rate of all current borrowing.

Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in australia. nominal exchange rates are .80 euros per dollar and 1.4 australian dollars per u. s. dollar. where does purchasing power parity hold? a. both the euro area and australia. b. neither the euro area or australia. c. the euro area but not australia. d. australia but not the euro area.

To determine her power usage, samantha divides up her day into three parts: morning, afternoon, and evening. she then measures her power usage at 3 randomly selected times during each part of the day.