Answer:
a joint venture
Explanation:
"a commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities."
Given:
<span>bonds on the market with 19.5 years to maturity
</span><span>a yield to maturity of 6.6%,
current price of $1,043
face value of $1,000
YTM = Coupon payment / current price
6.6% = Coupon payment / 1,043
6.6% * 1,043 = Coupon payment
68.838 = coupon payment
Coupon rate = Coupon payment / Face Value
Coupon rate = 68.838 / 1,000
Coupon rate = 0.068838 or 6.88%
The coupon rate of DMA Corporation's bonds is 6.88%.
Regardless of its price in the market, each bond will have 68.838 annual interest payment or 34.419 semi annual payments.</span>
Do you have the answers? I will help you if you write them down.
In equilibrium : Y = AE
<span>Y = $3,600 - 0.8Y
</span><span>Y + 0.8Y = $3600</span>
<span>1.8Y = $3,600
</span>Y = $3,600/1.8
Y = $2,000
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