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2 years ago

10

3 . Relationship between tax revenues, deadweight loss, and demandelasticity

1 answer:

Molodets [167]2 years ago

5 0

Taxing a good with relatively less elastic demand, helps government to raise more revenue with lower welfare loss.

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The variable in an experiment that is observed or measured in response to the experimental condition is known as the _________ v

Ierofanga [76]

Design make liability

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3 years ago

Tyler was employed at a local grocery store, food world. the store manager, jeff, discovered that there were several cartons of

Bumek [7]

<span> Yes, Tyler has a claim against food world because he</span> has a cause of action against Food World for wrongful discharge. The reason is because his refusal to take the polygraph test cannot be the basis for termination of his employment . More evidence about the claim that he took the cigarettes is required for a claim.

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3 years ago

What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that curre

aleksklad [387]

Answer:

(a) 6.206%

(b) 6.54%

(c) 6.58%

Explanation:

Given that,

Commercial paper value = $3 million

Currently selling at 97.50 percent of its face value.

Days from maturity = 145

(a) Discount yield:

= $\frac{(Face\ value - Current\ price)}{Face\ value}\times\frac{360}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{100}\times\frac{360}{145}$

= 0.025 × 2.4827

= 0.06206 or 6.206%

(b) Bond equivalent yield:

= $\frac{(Face\ value - Current\ price)}{Current\ price}\times\frac{365}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{97.50}\times\frac{365}{145}$

= 0.026 × 2.52

= 0.0654 or 6.54%

(c) Effective annual return:

Future value = Present value × $(1+r)^{n}$

$100 = $97.50 × $(1+r)^{\frac{145}{365}}$

$(\frac{100}{97.50})^{\frac{365}{145}} = 1+r$

1.0658 = 1 + r

0.0658 or 6.58% = r

6 0

2 years ago

Dufner Co. issued 17-year bonds one year ago at a coupon rate of 7.3 percent. The bonds make semiannual payments. If the YTM on

Ierofanga [76]

Answer:

The current dollar price assuming a par value of $1,000 is $ 1,213.95

Explanation:

The current price is computed as shown below:

The coupon payments will be as follows:

= (7.3% ÷ 2) × $ 1,000 (Since the payments are semi annual, hence divided by 2)

= $ 36.5

YTM will be as follows:

= (5.3% ÷ 2) (Since the payments are semi annual, hence divided by 2)

= 2.65%

N is computed as follows:

= (17 - 1 ) × 2 (Since the payments are semi annual, hence multiplied by 2)

= 32

So, the price of the bond will be as follows:

= Coupon payment x [ $[ (1 - 1 / (1 + r)^n ] / r$ ] + $Par value / (1 + r)^n$

= $ 36.5 × [ ( 1 - $\frac{1}{(1 + 0.0265)32}$ ] / 0.0265 ] + $\frac{1000}{1.0265^{32}}$

= $ 36.5 × 21.39526 + $ 433.0255

= $ 780.92699 + $ 433.0255

= $ 1,213.95

7 0

2 years ago

Activities involved in buying and selling goods on a large scale.

bezimeni [28]

Answer:

I think answer is price fixing

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2 years ago