Answer:
When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%
Explanation:
Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).
Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.
![r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2Br%28annual%29%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1)
So, everything should look like this.
![r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923](https://tex.z-dn.net/?f=r%28semi-annual%29%3D%5B1%2B0.08%5D%5E%7B%5Cfrac%7B1%7D%7B2%7D%20%7D%20-1%3D0.03923)
Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%
Best of luck.
Answer:
False
Explanation:
Within the relevant range of activities, total fixed costs remain constant and fixed costs per unit decrease as total output increases. Total variable costs vary depending on total output, but variable costs per unit should remain constant.
On a long term basis, all costs are variable, that is why it is important to consider the range of activities, i.e. output levels.
Answer:
C. availability.
Explanation:
The availability bias and misinterpretation is the result of increased frequency and omnipresence of information that does not reflect its importance or correctness.
Here, Jill is clouded by how much car deaths are propagated in the media, so she fails to realize the correct answer, despite the fact that stomach cancer could seem rational in her mind.
Answer:
Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )
Explanation:
Truman sell a large number of common household items ( assuming 100 unit )
while Stapleton sells a small number of expensive items ( assuming 20 units )
lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit
with the above assumptions
Truman gross profit ratio = $5 * 100 units = $500
Stapleton gross profit ratio = $50 * 20 units = $1000
from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units
Answer:
See below
Explanation:
The importance of establishing control in this case stems from the fact that as the points in these type of charts exceed beyond the set limits, it is possible that those points get eliminated and a revised value of R can be obtained. Accordingly, the limits and the center line also get revised on an R chart and x chart. This also allows for the limits to get tighter on both of the charts.
