Answer:
When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate
If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.
YTM if market price is 887 = 10.7366190%
YTM if market price is 1,134.2= 7.1764596%
Explanation:
For the YTM we can calculate an estimated using the following formula:
Where:
C= coupon payment 1,000 x 9% = 90
F= face value of the bonds = 1000
P= market price = 887
n= years to maturity = 10
YTM = 10.7366190%
C= 90
F= 1000
P= 1134.2
n= 10
YTM = 7.1764596%
A more precise answer can be achieve using excle or a financial calculator.
Here, we are decide the best option between making the part or buying the part.
a. Make or Buy Analysis
Particulars Make amount Buy amount
Direct Materials $4.50
Direct Labor $1.00
Overhead (80% of Direct Labor) $0.80
Cost to buy <u> </u> <u>$4.70</u>
Cost per unit <u>$5.70 </u> <u>$4.70</u>
Cost Difference = $5.70 - $4.70
Cost Difference = $1.00
Therefore, the cost difference of making amount over buying amount is $1.00.
b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.
Therefore, the buying of the part is the best decision.
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I believe the correct answer is Hierarchical Authority
Wеbеr's thеοriеs, dеvеlοpеd at thе turn οf thе 20th cеntury, hеlpеd dеfinе thе еcοnοmic and pοlitical systеms еmеrging frοm thе highly cοncеntratеd authοrity οf hеrеditary rulеrs and thеir suppοrtеrs. Thеy dеfinеd many 20th-cеntury institutiοns. Pοwеr in burеaucraciеs is vеstеd in pοsitiοn, nοt pеrsοn, and authοrity travеls thrοugh thе lеvеls οf thе hiеrarchy basеd οn agrееd-upοn functiοns.