Answer:
The price of the bond is $ 1,041.22
Explanation:
In calculating the price of the bond i discounted the future cashflows consisting of coupon payment and par value at redemption using the discount factor 1/(1+r)^N where r is the semi-annual YTM and N is the relevant period of cash flow.
The remaining coupon payments imply 14 years as a year has passed since the bond was issued.
Find attached spreadsheet.
Answer:
a. decrease by $58,800 per month
Explanation:
The computation is shown below;
<u>
Particulars Amount </u>
Contribution from product X $94,800 ($28 - $22) × 15,800 units
Less: Fixed cost -$108,000
Net loss avoided -$13,200
Non-avoidable fixed cost $72,000
The Total cost in case the product fall $58,800
Hence, the correct option is a.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step 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.