Answer:
value of the bond = $2,033.33
Explanation:
We know,
Value of the bond, ![B_{0} = [I * \frac{1 - (1 + i)^{-n}}{i}] + \frac{FV}{(1 + i)^n}](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5BI%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%20i%29%5E%7B-n%7D%7D%7Bi%7D%5D%20%2B%20%5Cfrac%7BFV%7D%7B%281%20%2B%20i%29%5En%7D)
Here,
Face value of par value, FV = $2,000
Coupon payment, I = Face value or Par value × coupon rate
Coupon payment, I = $2,000 × 6.04%
Coupon payment, I = $128
yield to maturity, i = 6.1% = 0.061
number of years, n = 15
Therefore, putting the value in the formula, we can get,
![B_{0} = [128 * \frac{1 - (1 + 0.061)^{-7}}{0.061}] + [\frac{2,000}{(1 + 0.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281%20%2B%200.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281%20%2B%200.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{1 - (1.061)^{-7}}{0.061}] + [\frac{2,000}{(1.061)^7}]](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B1%20-%20%281.061%29%5E%7B-7%7D%7D%7B0.061%7D%5D%20%2B%20%5B%5Cfrac%7B2%2C000%7D%7B%281.061%29%5E7%7D%5D)
or, ![B_{0} = [128 * \frac{0.3393}{0.061}] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%20%5Cfrac%7B0.3393%7D%7B0.061%7D%5D%20%2B%201%2C321.3635)
or, ![B_{0} = [128 * 5.5623] + 1,321.3635](https://tex.z-dn.net/?f=B_%7B0%7D%20%3D%20%5B128%20%2A%205.5623%5D%20%2B%201%2C321.3635)
or,
$711.9738 + 1,321.3635
Therefore, value of the bond = $2,033.33
Answer:
Instructions are listed below
Explanation:
Giving the following information:
For each of the following, indicate the possible effects on demand, supply, or both as well as equilibrium price and quantity of chocolate ice cream.
a. A severe drought in the Midwest causes dairy farmers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream.
Demand: decreases (because of the higher price)
Supply: restrains.
Equilibrium price: rises
Equilibrium quantity: decreases
b. A new report by the American Medical Association reveals that chocolate does, in fact, have significant health benefits.
Demand: increases
Supply: increases
Equilibrium price: rise
Equilibrium quantity: increases
c. The discovery of cheaper synthetic vanilla flavoring lowers the price of vanilla ice cream.
Demand: decreases
Supply: decreases
Equilibrium price: decrease
Equilibrium quantity: decrease
d. New technology for mixing and freezing ice cream lowers manufacturers' costs of producing chocolate ice cream.
Demand: remains
Supply: increase
Equilibrium price:
Equilibrium quantity:
Answer: It is A. Accounts Receivable.
Answer:
Economic loss=$(28,000)
Explanation
Accounting profit is the difference between total revenue and explicit cost.
Explicit cost refers to all cash and non cash cost incurred to produce the goods and services
Economic profit = sales revenue - explicit cost - implicit cost
Implicit cost is the opportunity cost - the value of the next best alternative sacrificed to produce the product.
The opportunity cost in the case is the worth of the offer to work elsewhere which is equal to $25,000
Economic profit = (7,000× 6) - 45,000- 25,000=$ (28,000)
Economic loss=$(28,000)