Response:
b. A reduction in the YTM.
Detail:
The valuation of the bond is derived from the present worth of expected cash flows. When determining these present values for cash inflows or the bond's price, the YTM is utilized for discounting. It is known that a higher interest rate results in a lower present value, whereas a lower interest rate yields a greater present value. Interest rates and present value have an inverse relationship. Thus, a decrease in YTM will enhance the bond's price.
Answer:
Explanation:
The supply equation for pork is expressed as Q = 178 + 40p - 60p_h
For a hog price of 1.50:
Q = 178 + 40p - 60(1.50)
= 178 +40p -90 = 88+40p
If the price of hog rises to 1.90:
Q = 178 + 40p - 60(1.90)
= 178 +40p - 114 = 64+40p
Response:
Overall cost= $753.75
Details:
Given the following details:
The established overhead rates:
Assembly= $13 per direct labor-hour
Testing & Packaging= $9.00 per direct labor-hour.
The direct labor wage rate for the company is $16.00 per hour.
For Job N-60:
Assembly;
DM= 340
DL=180
Testing & Packaging:
DM= 25
DL= 40
To determine the applied overhead for each section, we first need to find the direct labor hours:
Assembly= 180/16= 11.25 hours
Testing= 40/16= 2.5 hours
Now, we can distribute the overhead:
Assembly= 11.25 hours*13= $146.25
Testing= 2.5 hours*9= $22.5
Overall cost= DM + DL + Allocated overhead
Overall cost= (340 + 25) + (180 + 40) + (146.25 + 22.5)= $753.75