Answer:
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Explanation:
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Answer:
3 basics decision that need to made or taken by all the economies are
1. What to produce
2. For whom to produce
3. How to produce
Explanation:
The 3 basic decisions which should be made by the all economies are:
1. What to produce - Under this, the economies need to decide that what product or service they need to produce, which is liked by the consumers or purchased by the consumers so that they could sell their product in the market and earn profit out of it. In this, the economy need to take care of the needs or demand of the consumers and produce accordingly.
2. How to produce - Then the second decision is regarding how to the produce the goods or services, which the customers or consumers want as they have the limited resources available with them and from that they cannot produce all the products. So, they need to choose or decide.
3. For whom to produce or who consumes it - Under this, they required to take the decision regarding that for whom they are producing the goods or services whether it is a company or a consumer or economy.
Answer:
Price of Bond=$871.997
Explanation:
<em>The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.</em>
<em>Price of Bond = PV of interest payment + PV of redemption value</em>
PV of interest payment
interest payment = 5%× 1,000 = $50
PV = A × (1- 1+r)^(-n)/r
r- 6.2%, n- 18, A- 50
PV = 50 × (1 -1.062^(-18))/0.062=533.341
PV of redemption
PV = FV × (1+r)^(-n)
PV = 1,000 × 1.062^(-18)= 338.655
Price of the stock = 533.3419 + 338.655
Price of Bond=$871.997