Answer:
Mexico either specialized in the production of high end cars which it exports, while it imports low end cars for its domestic market. Since Mexico is a developing country, most of the cars sold domestically will be low end cars.
Countries manufacture and export the goods which they can produce at a lower opportunity cost since they have a comparative advantage in their production. Mexico probably has a comparative advantage in the production of high end cars (specially vs. the US) which generate higher revenues.
The answer to your question is 5%. Hope this helped!!please give brainliest
What happens to a monopolistically competitive firm that begins to charge an excessive price for its product? The firm will go out of business.
Answer:
Keyboard helps a user to type a letter,number and etc..
Answer:
YTM = 4.40%
Explanation:
From current yield we solve for price:
current yield: annual payment/ price
0.07 = 1,000 x 8.5% / price
85 / 0.07 = price = 1214,285714285714 = 1214.29
Now we solve for yield to maturity. This is the rate at which the present value value of the maturity and coupon payment are equal to his current price:
C 42.50
time 12 (6 years x 2 payment per year)
rate (semiannual as the payment are twice per year)
PV coupon
Maturity 1,000.00
time 12.00
rate
PVmaturity
PV c + PV m = $1,214.2903
So we got:
From here we solve using excel or financial calculator as you suggest.
<u>notice this will give you the semiannual rate: 0.021988524 = 2.20%</u>
You will have to multiply the answer by 2 giving you the 4.40% as you were told.