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Answer:
rounding to two decimal places: 11.11%
Explanation:
we can se the approximate formula for YTM
C= 57.5 (1,000 x 11.5%/2)
Face value = 1000
P= 1050 (market value)
n= 24 (12 years x 2 payment per year)
semiannual YTM = 5.4065041%
This is a semiannual rate as we consider semiannula payment.
We need to convert into annual rate:
YTM 11.1053109921343000%
rounding to two decimal places: 11.11%
The question is incomplete. The complete question is :
A manufacturer of mountain bikes has the following marginal cost function:
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.
a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?
b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?
Solution :
Given :
a). Fixed cost, FC = $ 2800
Total cost to produce 30 bicycles is :
= 2800 + 1287.85
= $ 4087.85
b). Total selling price = $ (200 x 30)
= $ 6000
Profit = 6000 - 4087.85
= $ 1912.15
Answer:
fair value is $761
Explanation:
Given data
bond value = $1000
rater r = 12 %
rate R = 16%
time = 20 year
to find out
a fair price
solution
we know compounding period in year is = 4
so time 20 x 4 = 80
fair Price = [(Quarterly Coupon) / (1 + R/400)^t] +bond value / (1 + R /400)^t
here
Quarterly Coupon = 12 × 1000/400 = 30
so
fair Price = [(30) / (1 + 16/400)^k] + 1000 / (1+16/400)^80
solve it we get
fair value is $761