Answer:
$920,266
Explanation:
The adjusted unamortized bond premium is the initial bond premium recorded on the issuance of the bond minus the amortized bond premium for the year ended 31 December 2021.
The initial bond premium is $981,878
At year end of the first year the amortized premium is the difference between the interest expense recognized and coupon interest paid in cash .
Interest expense=$8971878*10%=$897,187.80
coupon interest= $7990000*12%=$958,800.00
Amortized bond premium= $958,800.00-$897,187.80=$ 61,612.20
Adjusted unamortized bond premium=$981,878-$61,612.20=$920,265.80
Monopolies engage in price discrimination possible because they can get away with it.
A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay.
Consumers must pay the price of said product because they can not get the same product from any other seller.
When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>
<h3>What do you mean by elastic demand?</h3>
When the price of a product has a massive effect on the quantity purchased is called Elastic demand. A product is stated to have an elastic demand if sales drop sharply in reaction to a growth in price, or sales spike whilst prices are decreased.
Thus, The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>
Learn more about elastic demand:
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