Answer:
PV = $4,863.24
Explanation:
Computation of the given data are as follows:
Face value = $5,000
YTM = 3.6%
YTM (Semiannual) (Rate) = 3.6% ÷ 2 = 1.8%
Coupon rate = 3.4%
Coupon rate semiannual = 3.4% ÷ 2 = 1.7%
Coupon payment ( Pmt) = 1.7% × $5,000 = $85
Time period (semiannual) (Nper) = 19 × 2 = 38
By putting the value in the financial calculator, we will get the present value.
Attachment is attached below.
PV = $4,863.24
Answer: Option (A) is correct.
Explanation:
In a competitive market, when the demand curve i.e. the marginal benefit curve is exactly equal to the supply curve i.e. marginal cost curve and at this point the sum of consumer and producer surplus is maximized then an equilibrium is set in an economy and economic efficiency is obtained.
Inefficiency occurs at a point where there is a disequilibrium in an economy which means that competitive equilibrium is not achieved by the economy.
Answer:
B) False
Explanation:
The way the transaction takes place on the market is the Market Organization. Over time it's determined by a combination of factors: chance events (e.g., technical innovations, locations), financial and physical limitations (transaction costs, intelligence cost, manufacturing costs)etc.
Cost per unit
(300,000÷15,000)+20=40
Current profit
50×15,000−40×15,000=150,000
Profit change
60×15,000−40×15,000=300,000
units will knoll need to sell for profit to remain the same as before the price change is
(150,000+300,000)÷40=11,250
