Answer:
a) $1,153.72
b) $93.72
c) $424
Explanation:
Given:
Original bond was issued at 12%
YTM = 10%
Years left, N = 15 years.
a) The current price of bond:
Using Excel function, we have:
=PV(10%/2,2*15,-12%*1000/2,-1000)
= $1153.72
The current price of bond is $1,153.72
b) Dollar profit based on bond's current price will be calculated as:
Bond's current price - purchase price
= $1,153.72 - $1,060
= $93.72
Dollar profit = $93.72
c) The purchase price of $1,060 Ms. Bright paid in cash will be:
$1,060 * 40%
= $424
Answer:
No
Explanation:
It would be an out of pocket cost
In economics, diminishing returns is the decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, while the amounts of all other factors of production stay constant.
This will only require tax from our parent or other's because, this is for level of K-12 so it will be tax from people like us. This is what I thought tho.
Answer: $72
Explanation:
Opportunity cost is the cost incurred or benefit foregone by selecting some other alternative which gives the some level of satisfaction.
It is totally depend upon the preferences of the consumers or individuals.
The opportunity cost of seeing Bruce Springsteen is $72(= $134 - $62) that is the difference between actual ticket price and willing to pay for U2 concert.
