Layla could be an efficient employee in reducing the defect rate in the manufacturing and engineering departments
A
A price is at "quilibrium price" is when demand of quantity and supply are equal.
Based on the details given, the following are true:
- a. Value of bond = $806.09
- b. Your friend should invest in the bond with $1,000 face value
<h3>Value of Bonds </h3>
First find coupon:
= 10% x 1,000
= $100
Bond A
<em>= (Coupon x Present value interest factor of annuity, 13%, 15 years) + Face value of bond / ( 1 + 13%)¹⁵</em>
= ( 100 x 6.462) + (1,000 / 1.13¹⁵)
= $806.09
Bond B
= Face value - Current value
= 1,000 - 180
= $820
In conclusion, Bond B is overvalued so your friend should pick Bond A.
Find out more on Bond price calculation at brainly.com/question/25365327.