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ki77a [65]
3 years ago
7

Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a curren

t yield of 10%. The yield to maturity is ____________
Business
1 answer:
Mazyrski [523]3 years ago
5 0

Answer:

yield to maturity YTM = 35%

Explanation:

given data

purchase price = $8,000

face value = $10,000

current yield = 10%

solution

we get here yield to maturity YTM

so first we get Annual Coupon by current yield that is express as

Current yield = annual coupon  ÷ current price   ..............1

put here value we get

Annual Coupon = 10 % ×  8,000

Annual Coupon = $800

now we get YTM by purchase price  that is  

purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM )  .......2

put here value we get

8,000 =  \frac{800}{1+YTM} +\frac{10000}{1+YTM}

solve it we get

yield to maturity YTM = 35%

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allsm [11]

<u>In </u><u>microeconomics</u><u>, the term </u><u>monopoly</u><u>  is synonymous with decreasing returns of scale.</u>

When there are economies of scale in production?

As output increases, the long-run average total cost decreases. The total variable cost of creating five units of output is indicated by the Y-interval between the two curves in the diagram.

Is price and marginal cost equal?

  • In economics, the practice of setting a product's price to cover the additional expense of producing an additional unit of output is known as marginal cost pricing.
  • This policy limits the producer's ability to charge for each unit of a product sold to the addition to total cost attributable to materials and direct labor.

Simply put, what is microeconomics?

  • Microeconomics is the study of how people, households, and businesses make decisions and distribute resources.
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Learn more about microeconomics

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4 0
2 years ago
A firm is a competitive seller of output at amarket price of $3. The only resource itrequires to create its product is labor, wh
bulgar [2K]

Answer:

B. $6

Explanation:

Marginal revenue for the worker = change in wage ÷ change in quantity output

Change in wage = (40×$6) - (36×$6) = $240 - $216 = $24

Change in quantity output = 40 - 36 = 4

Marginal revenue for the worker = $24 ÷ 4 = $6

4 0
3 years ago
Cost of Goods Manufactured for a Manufacturing Company
aniked [119]

Answer:

Cost of goods manufactured $ 2567,400

Explanation:

<u>Ethtridge Manufacturing Company </u>

<u>Statement of Cost of Goods Manufactured </u>

<u>For the Month Ended July 31 </u>

Direct materials $1,150,000

Direct labor 966,000

Total factory overhead 490,500

Total manufacturing costs $  2606500

Add July 1 Work in process inventory, 316,400

Cost of Goods Available for manufacture $ 2922,900

Less July 31 Work in process inventory,  355,500

Cost of goods manufactured $ 2567,400

When we add the direct materials. direct labor and FOH we get the total manufacturing costs .

When the total manufacturing costs are added to the opening work in process inventory we get the cost of goods available for manufacture and we get the cost of goods manufactured by subtracting the ending work in process inventory from the cost of goods available for manufacture.

6 0
3 years ago
When Arby's announced in a recent ad campaign that "unlike McDonald's, all of Arby's chicken sandwiches are made with 100% all n
USPshnik [31]

Answer: Comparative

Explanation:

The comparative message is one of the type of business marketing strategy that helps in promoting the various types of products and the services in the market.

 It basically helps in encouraging the improvement and also innovation in the given products to meet the desirable properties in an organization based on the consumer requirement in the market.

The comparative message compare the products in the market with the other competitors in terms of characteristics and features. Therefore, comparative is the correct answer.      

 

8 0
3 years ago
On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount
vampirchik [111]

Answer:

a) $1,000

Explanation:

Early Settlement Discount

This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified  later date.

However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.

A quotation of 2/10, n/30

This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.

<em>Applying this to the question, the purchase date is August 1, the the latest date for which account is settle to qualify for early settlement discount will be 11 days i.e (1+10) .</em>

Since the payment will be made on August 12, no cash discount will received. Therefore, a payment of gross amount of $1,000 would be credited to the cash account.

7 0
3 years ago
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