A description of how a particular society distributes its resources to produce goods and services is the definition

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% nominal coupon, semiannual payments, and a $1,000 p

ycow [4]

Answer:

6.52%

Explanation:

For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:

Future value = $1,000

Rate of interest = 6.50% ÷ 2 = 3.25%

NPER = 15 years × 2 = 30 years

PMT = $1,000 × 8.25% ÷ 2 = $41.25

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the present value is $1,166.09

Now to determine the yield to call we use the RATE formula that is shown in the attachment below:

Present value = $1,166.09

Future value or Face value = $1,120

PMT = $1,000 × 8.25% ÷ 2 = $41.25

NPER = 6 years × 2 = 12 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the bond nominal yield to call is

= 3.26% × 2 years

= 6.52%

8 0

3 years ago

Donald operates an accounting firm and has an annual summer party for the employees and their families. He believes the party be

Vsevolod [243]

Answer:

$6000

Explanation:

Accordingly, the costs associated with throwing a party for employees and their families (spouses and significant others) are fully deductible (100%) as long as the party is hosted primarily for the employees. In this case, the party is for the employees as it is seen to benefits them, thus, total cost Donald can deduct equals cost of beverages and food plus cost of band,

That is,

= 5500 + 500

=$6000

5 0

3 years ago

Read 2 more answers

Suppose an industry has 100 firms, each with a supply curve P = 50 + 10Q . Furthermore, suppose the market demand curve is given

elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:

P = 50 + 0.1Q

Check: since Q = 100

P = 50 + 10/100Q

P = 50 + 0.1Q

To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:

Market demand = P = 200 - 0.9Q

Market Supply = P = 50 + 0.1Q

Therefore,

200 - 0.9Q = 50 + 0.1Q

200 - 50 = 0.1Q + 0.9Q

150 = Q

Equilibrium quantity = 150 units

Since P = 50 + 0.1Q

P = 50 + 0.1(150)

P = 50 + 15

P = 65

Equilibrium price is 65.

The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.

8 0

3 years ago

Providing something to a target market that is unique and valuable beyond simply offering a lower price than that of the competi

Scrat [10]

Answer:

Product or service differentiation competitive advantage

Explanation:

Product or service differentiation is the procedure of distinguishing the service or the product from others in order to make the product or service more attractive for a specific target market.

And Product or service differentiation is a competitive advantage which is tactic of strategic positioning for an business or firm could undertake in order to set its services or products and the brands apart from those of the others.

So, offering the target market which is unique or different by offering lower price than the others or competitors are known as product or service differentiation competitive advantage.

7 0

4 years ago

Your aunt wants to retire and has $375,000. She expects to live for another 25 years, and she also expects to earn 7.5% on her i

steposvetlana [31]

Answer:

$33,641.50

Explanation:

The computation of the amount withdrawn for the year is shown below:

As we know that

Present value = Annual withdrawals × Present value of annuity factor (7.5%,25)

$375,000 = Annual withdrawals × 11.14694586

So, annual withdrawals is

= $375,000 ÷ 11.14694586

= $33,641.50

We simply applied the above formula so that the annual withdrawn could come

3 0

4 years ago