Answer:
(a) The arbitrage strategy is to buy zeros with face values of $140 and $1,140 and respective maturities of one and two years, and simultaneously sell the coupon bond.
(b) The profit on the activity equals $0.72 on each bond.
Explanation:
The price of the coupon bond = 140 × PV(7.9%, 2) + 1000 × PV(7.9%, 2)
= 140 × (1-(1/1.079)^2)/0.079 + 1,000/1.079^2
= $1,108.93
If the coupons were withdrawn and sold as zeros individually, then the coupon payments could be sold separately on the basis of the zero maturity yield for maturities of one and two years.
[140/1.07] + [1,140/1.08^2] = $1,108.21.
The arbitrage strategy is to buy zeros with face values of $140 and $1,140 and respective maturities of one and two years, and simultaneously sell the coupon bond.
The profit on the activity equals $0.72 on each bond.
Under Price discrimination, an organization compares a few dimensions of its performance to that of another company, be it a competitor or in a totally distinctive industry.
Charge discrimination is a promoting method that fees clients one-of-a-kind charges for the same products or services based on what the seller thinks they can get the patron to comply with. In natural price discrimination, the vendor fees every customer the most fee they'll pay.
Charge discrimination refers to charging distinct clients special costs for the same true carrier. The Sherman Antitrust Act, Clayton Antitrust Act, and Robinson-Patman Act outlaw price discrimination while the intent of that discrimination is to harm competitors.
Price discrimination in a monopoly is a practice of charging extraordinary costs for an equal product. Monopolies generally have extra control over providers than ordinary sellers, which means that they can notably impact the providers' promoting prices.
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First conflict is a problem and second don't fight with the staff members if you did say sorry from your deeper part of heart to say a big soory
Answer:
Here no loss would be recognized by Julian on the transfer of shares and his basis inn Apricot corporation would be $400,000.
Explanation:
In the case of transfer of share made by Julian ( from Lemon company to Apricot company ) , no loss would be recognized by him, as the loss or gain would have been recognized only when the sale was made but that didn't happened.
His basis in the Apricot corporation would be equal to his tax basis in the Lemon company, so therefore his basis is equal to $400,000.
Answer:
if there are four sides of the roads in the middle
or in the traffic control room
