BUSINESS HIGH SCHOOL

A risk-free, zero-coupon bond with a face value of $1,000 has 15 years to maturity. If the YTM is 5.8%, which of the following would be closest to the price this bond will trade at?a. $721
b. $525
c. $686
d. $429

Answers

Answer 1
Answer:

Answer:

price = $429.25

so correct option is d. $429

Explanation:

given data

face value = $1,000

time = 15 year

rate = 5.8 % = 0.058

to find out

price of bond

solution

we get here price that is express as

price = (face\ value)/((1+rate)^(time))    ........................1

put here value we get price

price = (1000)/((1+0.058)^(15))

price = $429.25

so correct option is d. $429

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Answer:

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Answers

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Answers

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Consider the following information about a business Diane opened last year: price = $15, quantity sold = 25,000; implicit cost = $155,000; explicit cost = $260,000. What was Diane's economic profit? What was Diane’s accounting profit? Show your work!!

Answers

Answer:

Economic profit = $-40,000

Accounting profit = $115,000

Explanation:

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I hope my answer helps you

Answer:

Accounting Profit = $115.000 and Economic Profit= -40.000

Explanation:

Accounting profit is the monetary costs a firm pays out and the revenue a firm receives.

Accounting Profit = Total Revenues - Explicit Costs

Accounting Profit = ($15 x 25000) -$260,000=375.000-$260,000

Accounting Profit = $115.000

Economic profit is the difference between the total revenue received by a business and the total explicit and implicit costs for a firm.

Economic Profit = Accounting Profit - Implicit Cost

Economic Profit= $115.000 -$155,000

Economic Profit= -40.000
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