The Digby's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating
1 answer:
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Answer:
Quoted price of bond = $1825.05
Explanation:
The quoted price or price of the bond can be calculated by taking adding the present value of the annuity payments in form of interest made by the bond and the present value of the face value of the bond. The formula for the price of bond is attached.
The interest is payed semi annually, thus the semi annual coupon payment (C) is,
C = 2000 * 5.87% * 6/12 = 58.7
The semi annual YTM is = 6.9%/2 = 3.45%
Total semi annual periods are = 13 * 2 = 26
Bond Price = 58.7 * [(1 - (1+0.0345)^-26) / 0.0345] + 2000 / (1+0.0345)^26
Bond Price = $1825.051207 rounded off to $1825.05
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data about the number of passengers and total utilities. However, I have found a similar question on the internet and will using its data to solve for this problem. Besides that, I have attached the data in the attachment that I am using in this question.
Solution:
First of all, we are asked to calculate the marginal utility. In order to do that, we need to know the formula for Marginal Utility.
Formula:
Marginal Utility = TU2 - TU1/C2-C1
Where,
MU = Marginal Utility
TU = Total Utility
C = Number of units
So, according to the data provided.
For 0 number of passengers:
MU(0) = 0
For 2 number of passengers:
MU(2) = (100 - 0)/(2-0) = 100/2 = 50
Similarly,
For 4 number of passengers:
MU(4)=(225-100)/(4-2)= (125/2) = 62.5
For 6 number of passengers:
MU(6)=(355-225)/(6-4) = (130/2) = 65
For 8 number of passengers:
MU(8)=(400-355)/(8-6) = (45/2) = 22.5
For 10 number of passengers:
MU(10)=(425-400)/(10-8)= (25/2) = 12.5
