Not very, most of the time CO’s are underpaid so they can have mass amounts of them.
A) there are no close substitutes
Explanation:
A monopoly results when there is a single provider of a particular good or service. Since they’re the only company providing that good or service, the consumer must conduct their business with that specific provider. For example, imagine that Walmart is the only store you can buy food from. Walmart would dominate the entire supply market as it would be the only store from which you can buy your food.
Answer:
$1,916.2
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. In this question the payment of $95 per month for 24 months at APR of 16% is an annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where P = Annual payment = $95
First, Calculate the effective rate
EAR = ( 1 + 16%/12 )^12 - 1 = 17.2%
r = rate of return = 17.2% annual = 17.2% / 12 = 1.44% per month
n = number of years = 24 months
Placing value in the Formula
PV of annuity = $95 x [ ( 1- ( 1+ 1.44% )^-24 ) / 1.44% ]
PV of Annuity = $1,916.2
Answer:
yield to maturity
Explanation:
Yield to maturity is the required rate of return of an investor in the market to hold the bond or other security until the maturity date of the bond.
A coupon carries two types of interest rate
- Coupon rate
- Yield to maturity rate
Coupon rate is the interest rate which is stated on the face value of the security. The interest payment on the security is made on this rate.
As mentioned above the Yield to maturity rate is the required rate of return of an investor in the market to invest in these bonds.
