Answer:
4.62%
Explanation:
we need to calculate the yield to maturity of the bond:
YTM = [coupon + (face value - market value)/n] / [(face value + market value)/2]
- coupon = $50
- face value = $1,000
- market value = $1,078
- n = 38 semiannual payments
YTM = [$50 + ($1,000 - $1,078)/38] / [($1,000 + $1,078)/2]
YTM = $47.95 / $1,039 = 4.615 ≈ 4.62%
Answer:
True
Explanation:
The reason is that the business would only recruit extra employees if the demand of the product is increasing which means that the consumer are spending more on purchasing goods and services which would increase the domestic production that is responsible in increase in GDP of the country. So it is true that increased customer spending increases the domestic production which increase the GDP of the country.
Answer: The newly created firms is able to take advantage of economies of scale.
Explanation:
A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.
One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.
Answer:
b. value-based pricing
Explanation:
Value based pricing is a pricing strategy to set price of products based on value perceived by the purchaser. To have increased profit margin, business deduces the number of benefit the product provides to consumer. Then it establishes price which takes consideration of manufacturing cost, competitive price and consumer's willingness to pay price for the goods.
In the question mentioned IKEA not only provide functional benefit for the product but also quality, design, and services at low prices hence it is an instance of value based pricing.
Answer:
number of periods = 8 years.
Explanation:
We know,
Future Value = Present value × 
Here,
Present value = PV = $2,500
Future value = FV = $3,500
Interest rate (Compounding) = 5% = 0.05
We have to determine how many years (Periods) it will take, n = ?
Putting the values into the above formula,
$3,500 = $2,500 × 
or, = $3,500 ÷ $2,500
or, n log 1.05 = 1.4
or, n × 0.17609 = 1.4
or, n = 1.4 ÷ 0.17609
Therefore, number of years = 7.95 or 8 years.
