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Answer the following questions:
a.In 2004, four major hurricanes hit Florida. Explain how this destruction of property, and the rebuilding that went on afterward, affected GDP.
b.Explain how GDP has trouble accounting for other parts of the economy as well.
Coupon Rate
The interest rate on a bond, representing the annual interest payment made by the bond issuer relative to the bond's face value.
Amortization
The gradual reduction of a debt or the spreading out of the cost of an intangible asset over its useful life.
Discount
A reduction from the usual cost of something, often applied to encourage sales or offered to certain groups.
Bonds Payable
Long-term liabilities represented by negotiable certificates, indicating a promise to pay a specified sum of money plus interest at defined intervals.
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