Answer:
(A) $1,055.35 (B) $2,180.53 (C) $780.07 (D) $412.08.
Explanation:
The tenor of the bond is 27 years i.e. (27 * 2=) 54 periods of 6 months each (n).
Face Value (F) = $1,000
Coupon (C) = 6% annually = 3% semi annually = (3% * 1000 face value) = $30.
The Present Value (PV) of the Bond is computed as follows.
PV of recurring coupon payments + PV of face value at maturity
= 
A) Yield = 5.6% annually = 2.8% semi annually.
= 830.25 + 225.10
= $1,055.35.
B) Yield = 1% annually = 0.5% semi annually.
= 1,416.64 + 763.89
= $2,180.53.
C) Yield = 8% annually = 4% semi annually.
= 659.79 + 120.28
= $780.07.
D) Yield = 15% annually = 7.5% semi annually.
= 391.95 + 20.13
= $412.08.
Answer:
The correct answer is (b) Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
Explanation:
Solution
Now,
A monopolist would supply where the total revenue is Maximum
So, quantity produced = 500 where each will produce 500/2
=250 units
Therefore from the given question stated as, If the two firms operating in this market agreed to each supply one-half of the quantity a monopolist would supply, the contract would specify that: Nextflix supplies 250 subscriptions and Flixbuster supplies 250 subscriptions.
The current yield and annual coupon rate of 6.50% show that the bond price was at par a year ago.
The givens are FV=1,000, n= 6, PMT = 65.00, and i= 7.50 so with this we know that the selling price this year is $953.06.
So the holding period return is $1,000+$953.06+$65.00
$1,000=0.0181=1.81%
Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)
- Cutiepatutie ☺❀❤
A solvency ratio. It measures the income or operates success of an enterprise for a given period of time.
