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Kay [80]
3 years ago
11

Megan buys a bond that is redeemable for its par value of 20,000 after 5 years. The bond pays coupons of 800 annually. The bond

is bought to yield 8% annually. Calculate the accumulation of discount (principal) in the 4th coupon.
Business
1 answer:
vivado [14]3 years ago
3 0

Answer:

685.87.

Explanation:

Yield (Y) = 8%

Number of periods (n) = 5 years

Par value of the bonds (FV) = 20,000

Coupon Payment (PMT) = 800

Required: accumulation of discount in 4th coupon

The amount of discount in 4th coupon would be equal to the difference between value of bond at the end of 3rd coupon payment and value of bond at the end of 4th coupon payment.

Value of bond at the end of 3rd coupon payment can be calculated using financial calculator as below:

Input. Output

Y 0.08

n. 2

PMT -800

FV -20000

PV. 18573.39

Value of bond at the end of 4th coupon payment can be calculated using financial calculator as below:

Input Output

Y. 0.08

NPER. 1

PMT. -800

FV. -20000

PV. 19259.26

Thus, amount of discount accumulated in 4th coupon payment = 19,259.26 – 18,573.39 = 685.87.

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A subcontractor is responsible for outfitting six satellites that will be used for solar research. Four of the six have been com
BlackZzzverrR [31]

Answer: ∑Tₓ = 201.222

time required to complete the last two units is 201.222 minutes

Explanation:

Given that,

total time required to four units is 600 hours,

Learning curve applied is 75% and from the learning curve coefficient table, total time factor to complete four units at 75% learning curve is 2.946

so

∑Tₙ = T₁ × total time factor

{ ∑Tₙ is total time required to complete all the units which is 600 hrs, T₁ is Time for first unit, total time factor = 2.946 }

we substitute

∑T₄ = ∑T₁ × total time factor

600 = ∑T₁ × 2.946

∑T₁  = 600/2.946

∑T₁  = 203.666 minutes

Now to get the total time required to complete 6 units, we say:

∑T₆ = ∑T₁ × total time factor

Note that total time factor at this point changes;

( from the learning curve coefficient table, total time factor to complete 6 units at 75% learning curve is 3.934)

so we substitute

∑T₆ = 203.666 × 3.934

∑T₆ = 801.222

Now to find how long should it take them to finish the last two units, we say

∑Tₓ = ∑T₆ - ∑T₄

∑Tₓ = 801.222 - 600

∑Tₓ = 201.222

Therefore time required to complete the last two units is 201.222 minutes

5 0
3 years ago
Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus
Ira Lisetskai [31]

Answer:

C) $4,000

Explanation:

To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

where:

  • accounting profit = total revenue - accounting cost = $50,000
  • implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000

economic profit = $50,000 - $46,000 = $4,000

3 0
3 years ago
Suppose two companies own adjacent oil fields. Under the two fields is a common pool of oil worth $60 million. For each well tha
AlekseyPX

Answer:

Each company drills two wells and experiences a profit of $22 million.

Explanation:

If each company acts independently and drills two oil wells each they will have a total of 4 wells each worth (60 million ÷ 4= $15 million.

Each company will have two oil wells which equals (2* 15 million = $30 million)

But each company incurs cost of $4 million per well. That is total cost of $8 million.

Therefore the profit for each company will be $30 million - $8 million= $22 million

8 0
2 years ago
Omega corporation and precision products, inc., are the principal suppliers of their product in their market. they agree that om
seraphim [82]

Answer:

A per se violation

Explanation:

A per se violation is one that violates antitrust laws for example agreements made that violates the Sherman antitrust act. It has adverse effects on the competitiveness of a market.

Sherman antitrust act of 1980 is aimed at regulating competitiveness in a market. It prohibits anticompetitive agreements, and unilateral activities that tries to monopolize a market.

In this scenario Omega corporation and precision products, inc., are the principal suppliers of their product in their market. They make an agreement that one will focus on retailers and the other on wholesalers.

This is an attempt to monopolize the market by the two principal suppliers, and is a violation of the Sherman antitrust act.

6 0
3 years ago
Markets can:
solong [7]

Answer:

D

Explanation:

B and C dont make sense A is that you can never run out of things in stock

4 0
3 years ago
Read 2 more answers
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