First off you need to know what they mean. Trend means what people are in to and want to buy. Supply is how much the sellers have of items. If you have a huge supply of something that isn't in trend then you won't have any business. If you have a huge supply of something that is in trend, people will buy a lot of it. It is a factor of business like supply and demand. I hope this helped :)
Answer:
$1,067 is the correct answer.
Explanation:
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Answer:
6.45 and luxury good
Explanation:
The computation of the income elasticity of demand using the mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in income ÷ average of income)
where,
Change in quantity demanded is
= Q2 - Q1
= 5 - 3
= 2
And, average of quantity demanded is
= (5 + 3) ÷ 2
= 4
Change in income is
= P2 - P1
= $33,500 - $31,000
= $2,500
And, average of price would be
= ($33,500 + $31,000) ÷ 2
= $32,250
So, after solving this, the income elasticity of demand is 6.45 and it represent the luxury good as it is greater than one
