Answer:
The correct answer is all three options.
Explanation:
If price is reduced, the total revenue of perfectly competitive firm will not decline because a reduction in price will lead to increase in demand.
A monopoly firm is a price maker. It has a downward sloping demand curve. The demand curve is relatively elastic which means the firm needs to decrease price in order to sell more.
A firm in perfectly competitive market faces a horizontal demand curve,which means it can supply an level of output at the given price.
The demand curve in perfect competition reflects average revenue, marginal revenue and price. So, the price is equal to average and marginal revenue.
In a monopoly, the demand curve represents price and is higher than marginal revenue curve.
Based on the coupon rate, the call price and the selling price, the yield to call is 11.06%.
<h3>How is the yield to call found?</h3>
The formula to find it is:
= (Coupon + (Call price - Current price) / Number of periods ) / ( (Call price + Current price) / 2 ) x 2
Solving gives:
=( (12%/2 x 1,000) + (1,120 - 1,110) / 6 semi annual periods ) ) / ( (1,120 + 1,110) / 2) x 2
= (61.667 / 1,115) x 2
= 11.06%
Find out more on the yield to call at brainly.com/question/14801120.
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Answer:
Price willing to pay=$1105.94
Explanation:
Annual Coupon Payment=$1,000*0.08
Annual Coupon Payment=$80
Calculating Present Value (PV) of Par Value:
Where:
i is the rate of return.
FV is par value
PV= $258.419.
Calculating PV of annual Coupon Payment:
i is the coupon rate
A is the annual Payment
PV=$847.521
Price willing to pay= Present Value (PV) of Par Value+ PV of annual Coupon Payment
Price willing to pay=$258.419+$847.521
Price willing to pay=$1105.94
Answer:
Final Good
Products that are bought by individuals or households for personal use.
