Ted has paid off half of his mortgage. Which payment is he no longer required to make?

Q 10.29: The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. I

Anuta_ua [19.1K]

Answer:

Convertible bond

Explanation:

Convertible bond refers to the bond in which the investor has an option to convert its bond into another form

By converting the bonds you get the lower interest rate as compared to before.

Therefore as per the given situation, if the one bond contains 6.3% and other contains 4.9% so this represents the convertible bond

8 0

3 years ago

Suppose General Electric paid its line workers $12 per hour in 2015 when the Consumer Price Index was 100. Suppose that deflatio

Elena-2011 [213]

Answer:

(a) N = 10.08

(b) N = 10.89

(c) 19.05

Explanation:

(a)

$Real\ wage=\frac{Nominal\ wage}{CPI\ in\ the\ given\ year}\times CPI\ in\ the\ base\ year$

$12=\frac{N}{84}\times 100$

N = 10.08

(b)

$Real\ wage=\frac{Nominal\ wage}{CPI\ in\ the\ given\ year}\times CPI\ in\ the\ base\ year$

$12\times1.08=\frac{N}{84}\times 100$

N = 10.89

One thing to observe here is that percentage increase in the real wage is always equal to the percentage increase in nominal wage. Same can be verified with different values.

(c) It's given that the real wage is kept at $ 12 which was the same in the last year as well.

So % increase would be zero.

However, if that $ 12 is considered as a Nominal wage in the current year,then,

$Percentage increase=\frac{12-10.08}{10.08}\times100$

$=\frac{192}{10.08}$

= 19.05

7 0

3 years ago

Limited partnership investors are subject to which of the following risks?I Tax audit riskII Marketability riskIII Legislative r

marshall27 [118]

Answer:

I Tax audit risk

II Marketability risk

III Legislative risk

Explanation:

Limited partnership investors is a form of partnership that have one limited partner, it should be noted that there are many risk involved been a Limited partnership investors such as Tax audit risk, Marketability risk and Legislative risk

5 0

3 years ago

How to choose the answer .

barxatty [35]

The answer is B. Just trust me

6 0

3 years ago

Read 2 more answers

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 – 3Q. Each firm produces at a c

podryga [215]

Answer:

Explanation:

We need to find the function of firm 1 and firm 2 which we have as

PQ1/Q1= 300

600Q1– 3Q21 – 3Q1Q2/ = 300

300 – 6Q1 – 3Q2= 300

Q1 = 1/6(600 -300 – 3Q2)

Q1 = 50 – 1/2Q2 Reaction function for firm 1

Q2 = 50 – 1/2Q1 Reaction function for firm 2

Cournot which we have as;

Q2 = = 1/6(600 -300 – 3Q1)

Q2 = 50 – 1/2Q1

Q2 = 50 – ½(50 – 1/2Q1)

Q2 = 50 – 25 + 1/4Q1

Q1 = 100/3 = 33.33 Output

Q2= 100/3 = 33.33 Output

Equilibrium market price which is

P = 600 – 3(Q2+ Q2)600 – 3(100/3 + 100/3)= 400

Profits for firm 1

Π1 = TR1– C1= PQ1 – C1=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 1

Profits for firm 2

Π2 = TR2– C2= PQ2 – C2=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 2

Stackelberg is given as ;

QL= (600 – 300)/2*3 = 50 Firm 1 output is QL = 50

QF= (600 – 300)/4*3 = 25 Firm 2 output is QF =25 P = 600 – 3*75 = 375

Π1 = (375-300) * 50 = 3750Profit for firm 1

Π2 = 75*25 = 1875 Profit for firm 2

Bertrand is given as ;

Under this competition, price is the same to marginal cost and profits are zero

600 – 3Q = 300

Q = 100 Output = 100

P = Zero

Collusive Behavior is given as;

MR=MC600 - 6Q = 300

300 = 6QQ = 50 Output

P = 600 – 3*50 = 450

Π = (450 – 300) * 50 = 7,500profit

3 0

3 years ago