Answer: Decrease, decrease
Explanation: Substitute goods are those goods that are used in place of each other. When the price of a substitute good falls, it becomes more attractive to the consumers. Here, wood planks and wood beams are substitutes to each other. So, when price of wood plank falls, demand for wood beams will decrease, shifting the demand curve to the left. As a result, of this the equilibrium price of wood beams and the quantity of wood beams will also decrease.
Answer:
8.99%
Explanation:
For this question we use the PMT function that is presented on the excel spreadsheet. Kindly find it below:
Given that,
Present value = $975
Future value = $1,000
Rate of interest = 9.25% ÷ 2 = 4.625%
NPER = 25 years × 2 = 50 years
The formula is shown below:
= PMT(Rate,NPER,-PV,FV,type)
The present value come in negative
So, after solving this, the PMT is $44.96
Now the annual PMT is
= $44.96 × 2
= $89.92
So, the coupon interest rate is
= $89.92 ÷ $1,000
= 8.99%
Answer:
8.53 years
Explanation:
Calculation for the duration of the bond
The first step is to calculate for Change in Bond Price
Change in Bond Price = -(30)/1,170
Change in Bond Price = -0.0256×100
Change in Bond Price =-2.56%
Second step is to find the Effective Duration
Effective duration = -0.0256/0.0030
Effective Duration = 8.53 years
Therefore the duration of this bond will be 8.53 years
Answer:
(-$10,000) Unfavorable
Explanation:
Direct materials:
Quantity = 15 pounds
Standard price = $16 per pound
Actual price = Purchase Price ÷ Purchase quantity
= 170,000 ÷ 10,000
= 17
Material price variance:
= Actual purchase quantity × (Standard price - Actual price)
= 10,000 × ($16 - $17)
= 10,000 × (-$1)
= (-$10,000) Unfavorable
