Consider a t bond with a 6% semiannual yield and a clean price of $1100. number of days since last coupon: 40 days number of day
1 answer:
The bond dirty price is $ 1,107.61.
Dirty price:
- A bond's cost, which takes accumulated interest based on the coupon rate into account, is referred to as the "dirty price" in a bond pricing quote. Quotes for bonds between coupon payment periods include the interest that has accumulated as of the quote date. Simply put, a clean bond price excludes accumulated interest, but a dirty bond price does.
- A coupon bond's clean price is its face value minus any accumulated interest. In other words, it excludes the interest that accumulated between coupon payments. On financial news websites, the listed price is often the clean price. The term "dirty price" refers to the bond's price after collected interest between coupon payments.
Clean price = Quoted Price=$ 1,100
Accrued interest = = 7.61
Dirty price =clean price + accrued interest = 1100+7.61= $ 1,107.61
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Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation. Cite one example in each category; provide a sentence or two in support of each choice. (Hint: A "99cents menu" is very easily copied and is not a good source of sustained advantage.)
is given in the attachment.
Explanation:
Answer:
A. Set above equilibrium price
Explanation:
A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.
If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.
Option A is correct because... (please refer attached diagram):
When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.
