Answer:
Yield to maturity is 1.51%
Explanation:
Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.
Face value = F = $100
Price = P = $98.50
Year to mature = n = 1 year
Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]
Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]
Yield to maturity = $1.5 / 99.25
Yield to maturity = 0.0151
Yield to maturity = 1.51%
Answer:
$48
Explanation:
Contribution = Sales - Variable Costs
where,
Sales = $120
Variable Costs = $120 x 10% + $60 = $72
therefore,
Contribution = $120 - $72 = $48
The contribution margin per unit is: $48
Answer:
a.Susan is wrong, and Mary is free to disclaim warranties.
Explanation:
According to the Magnuson-Moss Act the seller of a product may or may not provide warranty on a product. But is warranty is provided the following conditions must be met.
- The seller must provide a full or limited warranty.
- The coverage of the warranty must be stated
- Warranty must be available to the customers, so that they can read it before making a purchase.
So Mary can choose to disclaim all warranties on her products, not making her liable for any defects found in them. But if she wants to provide warranty it must be written and follow the conditions stated above.
Answer: Budget Constraint
Explanation: Because from the Question we can see that brain needs $50,000 for his research but was dropped to $30,000 , so the $20,000 not given is the budget constraint .
