Answer:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
Explanation:
Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.
The price of each bond of the bond can be calculated using the following excel function:
Bond price = -PV(rate, NPER, PMT, FV) ........... (1)
Where;
rate = Yield to maturity of each of the bonds
NPER = Years to maturity
PMT = Payment = Coupon rate * Face value
FV = Face value
Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit
Explanation:
If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.
If they did that, revenue would be $7,425
Expenses would be wages and fixed costs:
= Wages + fixed costs
= (45 workers * wage rate) + 1,500
= (45 * 105) + 1,500
= $6,225
Economic profit would be:
= 7,425 - 6,225
= $1,200
Predator, because thats pretty much all we do.
Answer:
$1200
Explanation:
Gross Domestic Product (GDP) is the total market value of all of the final goods and services produced in a country over a particular period of time.
The contribution to GDP can be determined by adding the value created by each of the economic agents involved in the creation of the final goods and services
Arthur = 100 = 100
Bob = 300 - 100 = 200
Camille = 700 -300 = 400
Donita = 1200 - 700 = 500
Total Value 100 +200 +400 +500 = $1200.
You will observe that it is the same as the value of the final good i.e dress. In the production process, other goods involved are referred as intermediate goods
