Answer:
Bond Price = $1213.18605 rounded off to $1213.19
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1,000 * 0.10 * 6/12 = $50
Total periods (n) = 10 * 2 = 20
r or YTM = 0.07 * 6/12 = 0.035
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035] + 1000 / (1+0.035)^20
Bond Price = $1213.18605 rounded off to $1213.19
Answer: Self serving bias
Explanation: In simple words, it refers to the attribute of an individual to take the credit of every positive event themselves, whereas in case of negative events such individuals tends to blame external factors.
In the given case, Mark attributes his success as the outcome of his personality and blames his team or other such factors in case of negative results.
Hence from the above we can conclude that the given case illustrate self serving bias.
Answer:
The correct answer is Dell will offer $20 per copy of the software and Symantec will accept the offer.
Explanation:
A Nash equilibrium is a situation in which all players have put into practice, and know that they have done so, a strategy that maximizes their earnings given the strategies of others. Consequently, no player has any incentive to individually modify their strategy.
It is important to keep in mind that a Nash equilibrium does not imply that the best joint result for the participants is achieved, but only the best result for each of them considered individually. It is perfectly possible that the result would be better for everyone if, in some way, the players coordinated their action.
In economic terms, it is a kind of imperfect balance of competition that describes the situation of several companies competing for the market of the same good and who can choose how much to produce to try to maximize their profit.
