Answer:
YTM = 12.66%
Explanation:
FV = ¥100,000
PV = 0.87 x ¥100,000
PV= ¥87,000
Coupon payment = 4.3% x ¥100,000
Coupon payment = ¥4300 per year
N = 18 years
YTM = ?
We would simply plug these values into a financial calculator
https://www.calculator.net/finance-calculator.html?ctype=returnrate&ctargetamountv=1000000&cyearsv=18&cstartingprinciplev=87000&cinterestratev=6&ccontributeamountv=4300&ciadditionat1=end&printit=0&x=0&y=0
YTM = 12.66%
Answer:
a) Y = 500
b) Wages: 2.5
Rental price: 2.5
c) labor Share of output: 0.370511713 = 37.05%
Explanation:
![Y = 4K^{0.5} \times L^{0.5}](https://tex.z-dn.net/?f=Y%20%3D%204K%5E%7B0.5%7D%20%5Ctimes%20L%5E%7B0.5%7D)
if K = 100 and L = 100
![Y = 5(100)^{0.5} \times (100)^{0.5}](https://tex.z-dn.net/?f=Y%20%3D%205%28100%29%5E%7B0.5%7D%20%5Ctimes%20%28100%29%5E%7B0.5%7D)
![Y = 50 \times 10](https://tex.z-dn.net/?f=Y%20%3D%2050%20%5Ctimes%2010)
Y = 500
wages: marginal product of labor = value of an extra unit of labor
dY/dL (slope of the income function considering K constant while L variable)
![ax^b = bax^{b-1}](https://tex.z-dn.net/?f=ax%5Eb%20%3D%20bax%5E%7Bb-1%7D)
![Y = 5K^{0.5} \times L^{0.5}](https://tex.z-dn.net/?f=Y%20%3D%205K%5E%7B0.5%7D%20%5Ctimes%20L%5E%7B0.5%7D)
![Y' = 5K^{0.5} \times 0.5 L^{-0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%205K%5E%7B0.5%7D%20%5Ctimes%200.5%20L%5E%7B-0.5%7D)
![Y' = 2.5K^{0.5} \times L^{-0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5K%5E%7B0.5%7D%20%5Ctimes%20L%5E%7B-0.5%7D)
![Y' = 2.5(\frac{K}{L})^{0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5%28%5Cfrac%7BK%7D%7BL%7D%29%5E%7B0.5%7D)
With K = 100 and L = 100
![Y' = 2.5(\frac{(100)}{(100)})^{0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5%28%5Cfrac%7B%28100%29%7D%7B%28100%29%7D%29%5E%7B0.5%7D)
Y' = 2.5
rental: marginal product of land = value of an extra unit of land
dY/dK (slope of the income function considering K variable while L constant)
![Y = 5K^{0.5} \times L^{0.5}](https://tex.z-dn.net/?f=Y%20%3D%205K%5E%7B0.5%7D%20%5Ctimes%20L%5E%7B0.5%7D)
![Y' = 2.5K^{-0.5} \times L^{0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5K%5E%7B-0.5%7D%20%5Ctimes%20L%5E%7B0.5%7D)
![Y' = 2.5(\frac{L}{K})^{0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5%28%5Cfrac%7BL%7D%7BK%7D%29%5E%7B0.5%7D)
L = 100 K = 100
![Y' = 2.5(\frac{100}{100})^{0.5}](https://tex.z-dn.net/?f=Y%27%20%3D%202.5%28%5Cfrac%7B100%7D%7B100%7D%29%5E%7B0.5%7D)
Y' = 2.5
c) we use logarithmic properties:
![Y = 50 \times 10](https://tex.z-dn.net/?f=Y%20%3D%2050%20%5Ctimes%2010)
![log500 = log(50 \times 10)](https://tex.z-dn.net/?f=log500%20%3D%20log%2850%20%5Ctimes%2010%29)
![log500 = log50 + log10](https://tex.z-dn.net/?f=log500%20%3D%20log50%20%2B%20log10)
50 was the land while 10 the labor
2.698970004 = 1.698970004 + 1
share of output to labor: 1/2.698970004 = 0.370511713
Answer:
Unsystematic risk
Explanation:
<em>The portfolio theory posits that the total risk on a collection of assets (i,e a portfolio) can be reduced by spreading the invested fund into different assets that are uncorrelated.</em>
<em>According to this model, the total risk on a portfolio is divided into systematic and unsystematic risks. The theory assumed by diversification, the unsystematic risk associated with a portfolio is eliminated.</em>
Unsystematic risk essentially are those unique individual assets for example. if we invest in company stock, risk associated with factors like bad management , law suit against a company, defect in company;s products are example of unique or systematic risks
Answer:
$3,310.20
Explanation:
The applicable formula in this case is
A = P x ( 1 + r )^ n
Where A= amount after 20 years
P is principle amount= $1000
r is interest rate = 6 % or 0.06 per year: monthly interest = 0.06/12
n is number of periods = 12 months x 20 years
A = $1000 x ( 1 + 0.005) ^240
A = $1000x (1.005) ^ 240
A =$1000 x 3.31020447580
A =$3,310.2044
Answer: Option A is the right answer
Explanation: Evidences in most cases has shown that MACRS is all about applying convention for one and a half year on assets. So when an entities owns 35-40% of an asset in forth quarter, Mid quarter convention will be applied for only one half of the last quarter, logically one and half month in the last quarter.