A 6.50% coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity [interest rate] is t
1 answer:
Answer:
The yield to maturity is 6.3974%
Step-by-step explanation:
The computation of the yield to maturity is as follows
Given that
NPER = 18 × 2 = 36
PMT = $1,035.25 × 6.50% ÷ 2 = $33.65
PV = $1,035.25
FV = $1,000
The formula is shown below:
=RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
AFter applying the above formula, the yield to maturity is
= 3.1987% × 2
= 6.3974%
Hence, the yield to maturity is 6.3974%
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Answer:
30units,2900
Step-by-step explanation:
Given that Country Motorbikes Incorporated finds that it costs $400 to produce each motorbike, and that fixed costs are $1600 per day.
The price function is p(x) = 700 − 5x, where p is the price (in dollars) at which exactly x motorbikes will be sold.
If x units are produced and sold we have
Costs for x units = variable costs *x +Fixed costs
Sales revenue = no of units sold * price =
Profit funciton = P(x) = Sales revenue - Total cost
=
To get maximum profit we use derivative test I derivative =0 and II derivative =negative
Producing 30 units will maximize the profit.
Max profit
=P(30) = 2900