Answer:
(in the graph)
Explanation:
The PPF will show how Mario can only do as much of pizza and pasta and there is a certain point at which producing additional units of pasta or pizza comes at the cost of resinging a unit of the other good.
The points over the line and below the lien are attainable.
While those above the frontier are unattainable for Mario's current factor disposition.
Answer:
D. $30,000
Explanation:
The bond is issued on discount when the issuance price is less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.
This discount will be amortized using Effective Interest method as below
Interest Payment = $5,000,000 x 8% x 6/12 = $200,000
Interest Expense = $4,600,000 x 10% x 6/12 = $230,000
Discount amortization = $230,000 - $200,000 = $30,000
Answer: 25%
Explanation:
The annual rate of return is calculated by simply dividing the Annual income by the average investment.
Annual Income
Annual revenues of $133,500
Annual expenses of $76,000
Annual Income = Revenues - Expenses
Annual Income = $57,500
Average Investment
Calculated by dividing the Addition of the beginning and ending (salvage value) Investment figure by 2.
= (449,000+11,000)/2
= $230,000
Annual Rate of return is therefore,
= 57,500/230,000
= 0.25
= 25%
Answer:
Explanation:
First, find the YTM of the bond using the following inputs on a financial calculator;
N = 15*2 = 30 semiannual payments
PV= -925
Semiannual coupon payment; PMT = (8%/2)*1000 = 40
FV = 1,000
then CPT I/Y = 4.458%
Annual rate = 4.458% *2 = 8.92%
Next, use the YTM above and change the time to maturity to (15-5 )= 10 years or 20 semiannuals. Therefore, the price at year 5 will be as follows;
N = 10*2 = 20
Semiannual coupon payment; PMT = 40
FV = 1,000
Semiannual rate; I/Y = 4.458%
then CPT PV = 940.206
The price at year 5 will be $940.21
