Answer:
yield to maturity YTM = 35%
Explanation:
given data
purchase price = $8,000
face value = $10,000
current yield = 10%
solution
we get here yield to maturity YTM
so first we get Annual Coupon by current yield that is express as
Current yield = annual coupon ÷ current price ..............1
put here value we get
Annual Coupon = 10 % × 8,000
Annual Coupon = $800
now we get YTM by purchase price that is
purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM ) .......2
put here value we get
8,000 = 
solve it we get
yield to maturity YTM = 35%
Answer:
Following is the classification of the costs associated with each of these activities that is prevention cost, appraisal cost, internal failure cost, or external failure cost.
(a) Product testing - Appraisal Cost
(b) Product recall - External Failures
(c) Product design - Prevention cost
(d) Quality circle - Prevention cost
(e) Inspection of goods - Appraisal Cost
Explantion cost:
Appraisal costs are costs incurred to detect defects in the poduct produce. Prevention cost are cost incurred to prevent detects in the product produce.
Internal failure costs are costs incurred to remove defects found before the customer receives the product or service. External failure costs are costs incurred to remove defects found after the customer receives the product or service.
Answer:
The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.
Explanation:
For the purpose of regular income tax, the deduction pertaining to medical expenses are available up to the extent it exceeds 10% of AGI.
Deduction available = excess expenses incurred - 7.5% of AGI
= ($16,000 + 4,000 + 2,500
+5,000) - 7.5%*130000
= 27500 - 9.750
= $17,750
Therefore, The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.
Answer:
Spillover cost.
Explanation:
Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.
Answer:
pat should drive if saving half an hour is worth $0.50 or more
Explanation:
Marginal cost is the additional cost generated by producing an additional unit of output.
Marginal cost of taking the bus = 1 / 2 = 0.50
Marginal utility is the additional utility derived from consuming one more unit of a good
Marginal utility per good = marginal utility / price of the good
Pat should take the action that would yield him the highest utility given the marginal cost
So,pat should drive if saving half an hour is worth $0.50 or more
