One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 6.7% annual coupon bonds at their par value of $1,000. Today,
1 answer:
Answer:
Bond Price = $1115.075775 rounded off to $1115.08
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or market interest rate will be,
Coupon Payment (C) = 1000 * 0.067 = $67
Total periods (n) = 14
r or YTM = 0.055 or 5.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 67 * [( 1 - (1+0.055)^-14) / 0.055] + 1000 / (1+0.055)^14
Bond Price = $1115.075775 rounded off to $1115.08
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Answer:
The max revenue is "$32,300". The further explanation is described below.
Explanation:
(a)
The composition as well as response of models within 6 rows seems to be as described in the following:
Maximum 1650B + 850N + 790P (B bracelets, N necklaces and P pins produce overall revenue)
Yes of course,
The total gold ounces will be:
⇒
The total labor hours will be:
⇒
Integers B, N, P will become
The response for LINDO is:
B=10.0.
N=0
P=20
Final Value of Maximization will be:
= 32,300
(b)
- 10 bracelets, hardly any necklaces as well as 20 pins should always be made by the shop.
- These goods utilizing 125 ounces of gold simultaneously,
- It would use 310 hours of labor although 10 hours would then stay unused.
The maximum salary will become:
= $32,300.