Answer:
YTM = 2.84%
Explanation:
We know,
YTM = 
Here,
I = Coupon payment = It is calculated by multiplying the coupon interest rate by the par value of the bond.
M = Bond's par value.
Vo = Bond's current market price.
n = Number of years or periods.
Given,
n = 18
I = Semiannual coupon bonds rate = $1,000*7%*(1/2) = $70 ÷ 2 = $35
M = Par value of a bond = $1,000
Vo = Market value of the bond = $1,102.50
Therefore,
YTM = 
or, YTM = 
or, YTM = $29.32 ÷ $1,034.08
or, YTM = 0.0284
Therefore, YTM = 2.84%
In dangerous professions like law enforcement and construction, women are respected. Since these jobs are dangerous, many women are not often interested in working in these career fields. Due to the smaller number of women who will work in the career fields, those who do are highly respected by their peers.
Answer:
COFFEE SHOPS would have a larger potential customer base.
NEW SHOE STORE is geared toward individuals with more disposable income.
Explanation:
The logic here is quite simple, households earning $25,000 or more are likely to be customers of the coffee shops. This also includes households earning $55,000 or more. So the consumer base of coffee shops is very large.
On the other hand, only households earning $55,000 or more are likely to be customers of the new shoe store. Since there are fewer households that earn $55,000 or more, their consumer base will be smaller and it should rather focus on people with more disposable income.
Even if 90% of the people earn above $55,000 and only 10% earn between $25,000 - $55,000, the consumer base of coffee shops will always be larger since it includes almost everyone.
Answer:
b. Accept Project A and reject Project B.
Explanation:
To verify project viability at a required return rate of 16%, simply calculate the project's net present value at a rate of 16%. If the NPV is positive, then the project should be accepted, otherwise it should be rejected.
Project A:
Project A should be accepted.
Project B:
Project B should be rejected.
Answer: PED = -1.665
The price demand elasticity is relatively elastic because PED is greater than 1..(ignore the minus sign)
Explanation:
Using the formula PED = % change in quantity/ % change in price
PED = ((Q1 - Q0)/(Q1 + Q0))/((P1 -P0)/(P1+P0))...EQU 1 where Q1 = 50 is quantity of product at Price P1 =10 and Q0 = 25 is quantity of product at Price P0 = 15 and PED is price of elasticity
Substituting figures into equ1
PED = ((50 - 25)/(50+25)) /((10 -15)/(10+15))
PED = -1.665
