Answer:
The price of the bond is 2143,67
Explanation:
A zero coupon bond is a bond that does not pay coupon payments and instead pays one lump sum at maturity.
Zero coupon bond value= F/(1+r)^t
F = face value or a par value
r= rate of yield per period
t= time to maturity ( in periods)
Replacing
F = $10,000
We assume semiannual compounding periods
r= 5.2/2=2.6
t= 30 x 2=60
Zero coupon bond value= $10,000/(1+0.026)^60
Value = 2143,67
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, the <em>"Clayton Antitrust Act of 1914"</em> is the name given to a law that was part of United States antitrust law regime that had the main purpose of adding further substance to it in order to prevent anticompetitive practices by the companies in the market. Therefore that this law discusses four principles of economic trade and business which were the price discrimination, mergers and acquisitions, exclusive dealings and any person who was a manager of two or more organizations at the same time. It all focused on protecting the competition from the companies that looked for becoming a monopoly.
Investors at Penny's candies have low expectations from the company since it has a very low P/E ratio. Either the company is not performing well or investors have discounted some bad news in future cash flows.
Whereas Donna's confections has a P/E of 6.7 which is much better than that of Penny's. So here the company is performing well and investors are positive on future good news and they expect the cash flows to improve and hence the stock rules at a higher P/E ratio
During a period of economic expansion, the demand curve for bonds shifts to the left.
<h3>What is the effect of an economic expansion?</h3>
During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.
If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.
Here are the options to this question:
A) the demand curve for bonds shifts to the left.
B) the supply curve of bonds shifts to the right.
C) the equilibrium interest rate falls.
D) the equilibrium price of bonds rises.
To learn more about economic expansion, please check: brainly.com/question/831569
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Answer: Reduce output
Explanation: Profit = Total Revenue – Total Costs
Therefore, profit maximization occurs therefore, profit maximization occurs at the most significant gap or the biggest difference between the total revenue and the total cost.
TC = AC×Q = $4×500 = $2,000
Theoretically, profit maximization occurs where MR = MC
From the forgoing, producing an extra unit will increase the cost of the company thereby reducing profit.
The company should reduced output to around 499 units or less
