Albatross Company purchased a piece of machinery for $60,000 on January 1, 2019, and has been depreciating the machine using the
2 answers:
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Answer:
The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.
Explanation:
We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula
And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.
Identifying the given information.
We have a period of 30 years, so for the semiannual bond we have periods.
The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to find the interest per period PMT.
The current price of the bond, PV is $1050.
Replacing the values on the semiannual Yield to Maturity
Simplifying we get
Finding the Yield to Maturity.
We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get
Alternatively we can use Excel and write:
RATE(n, PMT, PV, FV)*2
That is
RATE(60,50,1050,1000)*2
And we will get the exact Yield to maturity 9.49%
Answer:
(A) 15 × p
(B)
(C)
Explanation:
(B) direct= demand function of labor will be,
Q: f(w),
where Q is labor demand quantity and is function of wage
K=9 constant, then production function changes to,
Marginal product of labor:
Marginal revenue product or value of marginal product:
This is showing what revenue a firm will generate due to hiring one additional unit of labor.
So firm will keep hiring until the revenue the additional labor is generating is equal to its hiring cost or wage.
So, putting MRP or VMP to wage:
By solving,
And the multiplicative term is
(A) Inverse demand function of labor will be,
W: f(Q)
where W is wage rate and demand function of labor demanded quantity.
As previously solved,
and the multiplicative constant term is 15 × p.
(c) In long run capital will also variate, so production function will be,
( p is market price of good that firm is producing using labor)
putting it equal to Wage)
and the constant term is .
Note:
I did a) second place and b) on first . I already put the serial alphabet on the start of the answer.