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crimeas [40]
3 years ago
10

Suppose roses are currently selling for $40 per dozen, but the equilibrium price of roses is $30 per dozen. We would expect a a.

shortage to exist and the market price of roses to increase. b. shortage to exist and the market price of roses to decrease. c. surplus to exist and the market price of roses to increase. d. surplus to exist and the market price of roses to decrease.
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer:

D

Explanation:

Equilibrium means a state of equality or balance between market demand and supply. Refers to a price at which both parties producers and consumers are agreed to exchange.

Prices where demand and supply are out of balance are called points of disequilibrium.

If the selling prices is over the equilibrium price, means that there is a surplus of excess supply, so the prices would go down to returned to the equilibrium price.

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Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years
bija089 [108]

Answer:

a. What are the prices of these bonds today?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/26]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/26]

0.03 x (500 + 0.5MV) = 37.5 + 38.46 - 0.03846MV

15 + 0.015MV = 75.96 - 0.03846MV

0.05346MV = 60.96

MV = 60.96 / 0.05346 = $1,140.29

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/26]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/26]

0.0375 x (500 + 0.5MV) = 30 + 38.46 - 0.03846MV

18.75 + 0.01875MV = 68.46 - 0.03846MV

0.05721MV = 49.71

MV = 49.71 / 0.05721 = $868.90

b. What do you expect the prices of these bonds to be in one year?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/24]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/24]

0.03 x (500 + 0.5MV) = 37.5 + 41.67 - 0.04167MV

15 + 0.015MV = 79.17 - 0.04167MV

0.05667MV = 64.17/0.05667 = $1,132.29

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/24]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/24]

0.0375 x (500 + 0.5MV) = 30 + 41.67 - 0.04167MV

18.75 + 0.01875MV = 71.67 - 0.04167MV

0.06042MV = 52.92

MV = 52.92 / 0.06042 = $875.87

c. What do you expect the prices of these bonds to be in three years?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/20]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/20]

0.03 x (500 + 0.5MV) = 37.5 + 50 - 0.05MV

15 + 0.015MV = 87.5 - 0.05MV

0.065MV = 72.5

MV = 72.5 / 0.065 = $1,115.38

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/20]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/20]

0.0375 x (500 + 0.5MV) = 30 + 50 - 0.05MV

18.75 + 0.01875MV = 80 - 0.05MV

0.06875MV = 61.25

MV = 61.251 / 0.06875 = $890.91

d. What do you expect the prices of these bonds to be in eight years?

price of bond X:

0.03 = {37.5 + [(1,000 - MV)/10]} /  [(1,000 + MV)/2]

0.03 x [(1,000 + MV)/2] = 37.5 + [(1,000 - MV)/10]

0.03 x (500 + 0.5MV) = 37.5 + 100 - 0.1MV

15 + 0.015MV = 137.5 - 0.1MV

0.115MV = 122.5

MV = 122.5 / 0.115 = $1,065.22

price of bond Y:

0.0375 = {30 + [(1,000 - MV)/10]} /  [(1,000 + MV)/2]

0.0375 x [(1,000 + MV)/2] = 30 + [(1,000 - MV)/10]

0.0375 x (500 + 0.5MV) = 30 + 100 - 0.1MV

18.75 + 0.01875MV = 130 - 0.1MV

0.11875V = 111.25

MV = 111.25 / 0.11875 = $936.84

7 0
3 years ago
A particular city has an asian population of 1419 people, out of a total population of 23,609. conduct a goodness of fit test at
lions [1.4K]
Given that a<span> particular city has an asian population of 1419 people, out of a total population of 23,609.

To conduct a goodness of fit test at the 5% level to determine if the self-reported sub-groups of asians are evenly distributed.

Since, the parameter of interest is 'if the self-reported sub-groups of asians are evenly distributed', thus the null hypothesis is "the self-reported sub-groups of asians are evenly distributed".</span>
3 0
3 years ago
When an investigation shows that ill people have something in common to explain why they all got the same illness, the group of
FromTheMoon [43]

Answer:

Outbreak

Explanation:

Outbreak has been defined as the sudden increase in occurence of a particular disease in a specific period of time and at a specific place. When people have something in common to explain why they all got thesame illness, it is called an outbreak. Any disease becomes an outbreak when it occurs in greater numbers than expected for a given region or community during a specified period of time or season.

7 0
3 years ago
At the Blue Restaurants Corporation, an employee survey reports that efforts to increase worker satisfaction by redesigning jobs
DiKsa [7]

Answer:

lower costs, leading to higher profits

Explanation:

Improving job satisfaction in the workplace results in better productivity. This is because employees get to enjoy what they do rather than feeling forced to work.

When the workplace is conducive it will result in lower rates of absenteeism and employee turnover.

These in turn lead to lower costs and higher profit.

Staff turnover is costly on the business as new hires have to be trained on the job to be effective.

7 0
3 years ago
A. calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity i
Leokris [45]
<span>The first step is to multiply the present value by the interest rate. Since the present value is $1.6 million and the interest rate is 10%, this yields. $160,000. This product is then divided by 1 - (1 + the rate)^-term. So it is divided by 1 - (1.1)^-15. That is, the annual payment = $160,000/[1 - 1.1^-15] = $160,000/.760607951= $210,358.04</span>
3 0
3 years ago
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