Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
e) $1,191.79
Explanation:
In order to find the price of a bond we need to know the future value of the bond, the interest rate on the bonds, the coupon payments and the time to maturity. In this case the future value of the bond is 1,000, the interest rate is 5.5%, the time to maturity is 14 years and the coupon payments are 7.5% which are (0.075*1,000)=75. Now we input all these values in a financial calculator and compute the present value/price.
FV= 1,000
I=5.5
N=14
PMT= 75
Compute PV=1,191
The slope of the production possibility curve represents the opportunity cost of producing one good instead of the other.
<h3>What is the production possibility curve?</h3>
This is a curve that is used to illustrate the maximum output that can be produced of two goods when we use a minimum number of input.
This curve shows the different combinations of the input that would be used to get the required output.
Read more on the production possibility curve here:
brainly.com/question/2601596
Answer:
The second year’s depreciation for this equipment using the straight line method is 8,500
Explanation:
Depreciation: Depreciation is a decreasing value of the assets due to the tear & wear, obsolescence, usage,etc.
The formula to compute the depreciation under straight lie method is shown below:
= 
= 
= $8,500
The depreciation amount under straight line method should remain same over the estimated useful life
So, the second year’s depreciation for this equipment is $8,500
