Answer:
Part A:
Labur Productivity:
For US=5.14, LDC=1.35
Capital Productivity:
For US=1.72 LDC=4.31
Part B:(Multi factor productivity)
For US=1.29 LDC=1.03
Part C: (Raw material productivity)
For US=4.90 LDC=10.02
Explanation:
Part A:
Labur Productivity:
For US:

For LDC:

Capital Productivity:
For US:

For LDC:

Part B:
For US:

For LDC:

Part C:
For US:

ForLDC:
Converting Raw material FC into $ (1$=10FC)
Raw Material =19550/10=$1955

Answer: $4,642.37
The price of the bond is $4,642.37
Explanation:
Using the price of bond formula :
C × 1 - (1+r) *-n / r. + F / (1+r)*n
C = coupon rate = 2.9% of 10,000
= $290
n = 24years...... years to maturity
F = $10,000...... Face value/par value
r = yield to maturity = 3.4% = 0.034
Price of bond =
290 × 1–(1+0.034)*-24 /0.034
+ 10,000 / (1.034)*24
290× 1 - (1.034)*-24 / 0.034
+ 10,000 / (1.034)*24
290 × (1 - 0.448236347)
+ 4,482.36347
160.011459 + 4,482.36347
Price = $4,642.37 as the price of bond.
Answer:
This question lacks answers
A. currency swap.
B. arbitrage.
C. backwardation.
D. straddle.
<u>The answer is </u><u>b.</u>
Explanation:
Arbitrage is a common practice used to gain profits from inefficient markets. Since most financial markets are inefficient by nature, dealers and similar business entities that have an interest in this kind of business practice.
The profit in arbitrage is based on the <u>imbalance in the two prices</u> on each market respectively. The term is mainly used for financial markets and various financial instruments (securities, bonds, currencies).
In the example above, the dealer becomes an arbitrageur by making a profit from the difference in the yen/dollar exchange rate in two markets (NY and London.)