Basically examining the promblem
So here is the answer of the given question above:
In terms of economics, Harber's process takes a huge amount of capital. Initially, the process demands for a very high pressure and this is very expensive to produce. Second, the company would need to establish extremely sturdy pipes and containment vessels to endure the very high pressure, in order to produce this required condition; the building process is very costly as well as the maintenance. Hope this answer helps.
Answer and Explanation:
Given:
Bond price = $10,000
Dividend rate = 7.9% per year
A. Computation of Dividend receive each 6 months :
Dividend rate for 6 month = 7.9% / 2 = 3.95% = 0.0395
Dividend receive each 6 months = Bond price × Dividend rate for 6 month
Dividend receive each 6 months = $10,000 × 0.0395
Dividend receive each 6 months = $395
B. Computation of amount receive at the end of ten years:
Amount receive at the end of ten years is equal to face value of bond
Amount receive at the end of ten years = $10,000
