Answer:
6.35%
Explanation:
If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40
the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months
the bond matures in 18 years or 36 semiannual periods
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]
YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%
Answer: The correct answer is "A. Choice (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market effects, which are not externalities. ".
Explanation: Choice (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market effects, which are not externalities.
An externality is a situation in which the costs or benefits of producing or consuming a good or service are not reflected in its market price despite having an external impact.
In case A, the situation is reflected in the market price, while in case B, the external situation, despite having an impact, does not affect the market price.
Answer:
The correct answer is a) economies of scale
Explanation:
Economies of scale are when a company increases the production or associate with other company, to obtain a better price to reduce the cost of production. This happens because costs are spread over a larger number of goods.
Example:
Company A, require apples to produce his final product. And the provider has a price for each apple, however, if you buy more than 100, he gives you a discount of 5%. Company A can´t afraid this, because it just needs 50 apples per production.
The solution for the company is trying to expand the market, become efficient, to duplicate his production and obtain the discount. Or associate with Company B that needs 50 apples too, to obtain the discount and reduce his cost. (1 big purchase is better than 2 small purchases)
Answer: Option (b) is correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The preferences of Pam, Pru and Pat are given. Therefore, according to their preferences, the opportunity cost of the trip to Hawaii for Pam and Pat is a cruise and for Pru is a skiing.
Answer:
The pro side of not listing the 10% would be that until the price reduction becomes official it could be considered just a rumor. The unethical argument for keeping the knowledge that will drop 10% is that the production manager kept from his boss the knowledge that a possible impending reduction could save the company money.
