Answer:
Ans. Price of the bond is $9,250.57
Explanation:
Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)
Coupon=10000*(4.9%/2)= $245
To turn the annaul YTM to semi-annual, we have to use the following equation
After all this, we are ready to find the price, here is the math of this.
Best of luck.
Answer: (a) $197,500
(b) $ 189,500
Explanation:
Given : The marginal cost function :
To find the cost function, we need to integrate the above function with respect to x.
Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-
Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500
Similarly, the additional cost incurred in dollars when production is increased from 500 units to 550 units :-
Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500