Different locations contain different resources, countries trade to exchange their resources with other countries. Countries also trade to gain profit. Some goods are in demand and by trading, they can make a flourishing economy.
Answer:
When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate
If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.
YTM if market price is 887 = 10.7366190%
YTM if market price is 1,134.2= 7.1764596%
Explanation:
For the YTM we can calculate an estimated using the following formula:
Where:
C= coupon payment 1,000 x 9% = 90
F= face value of the bonds = 1000
P= market price = 887
n= years to maturity = 10
YTM = 10.7366190%
C= 90
F= 1000
P= 1134.2
n= 10
YTM = 7.1764596%
A more precise answer can be achieve using excle or a financial calculator.
A supply curve is a graphical representation showing the relationship between the price of a product or a service and the quantity supplied within a given period of time. It has a direct or positive relationship between price and the quantity supplied. In this case, If the sugar price rises then as a result the supply curve for cereals will shift to the left, reflecting an increase in cost of production.
The correct option is C.
The assembly line is a manufacturing process in which parts are added as the semi finished assembly as they move from workstation to workstation. The parts are added in sequence until all the parts are added. This type of production method is not suitable for production of small batches of products.
<span>Given,
Andrew's earning was $55,000 per year.
Fees(tuition and other related expense) for MBA school that Andrew joined $25,000 per year.
To find: total cost of the degree(explicit cost+opportunity cost)
Solution:
Explicit cost = fees for the course including all the expenses = $25,000 per year for 2 years = $25,000*2 = $50,000.
Opportunity cost = the loss of benefits from one alternative when other alternative is chosen. In this case, it is salary from the job which Andrew quits to join MBA school = $55,000 per year for 2 years = 55000*2 = $1,10,000.
So, total cost of the degree = $50,000 + $1,10,000 = $1,60,000
Answer: Option C $1,60,000</span>