Answer:
a) YTM = 9.8%
b) realized compound yield = 9.9%
Explanation:
a) PMT is 80
par value FV = 1000
coupon rate = 8%
current price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) is calculated as 
= 
= 9.8%
b) r2 = 10% = 100%+10% = 1.1
r3 = 12% = 100%+12% = 1.12
To find the realized compound yield, we first need the future value (FV) of the principal and reinvested coupons.
FV = ($80 * 1.10 * 1.12) + ($80 * 1.12) + $1080 = $1268.16
Let a be the rate at which the future value equals $1268.16.
953.1(1+y)³ = $1268.16
(1+y)³ = 1.33
1+y = 1.099
y = 0.099 = 9.9%
a. The break-even point equals Fixed Cost divided by Contribution per unit. This results in a break-even point of $1,500,000 divided by $19.95, which equals 75,188 subscribers. b. The new break-even point would be calculated by $1,500,000 divided by $24.95, yielding 60,120 subscribers. c. Currently, the subscriber base consists of 73,000, and after accounting for a loss of 10,000 subscribers, the adjusted total is 63,000. Since 60,120 subscribers are required to break even, the company remains profitable with 2,880 extra subscribers exceeding the break-even number.
Data Aggregations
Development Budget
I believe the answer is C, though I'm unsure.
Answer:
Monopolistic competition.
Explanation:
This market structure known as monopolistic competition arises when multiple businesses provide similar products that cannot be seen as perfect substitutes for one another. In this setting, numerous sellers vie for a superior market position within a specific product or industry. This form of monopolistic competition features unrestricted entry for new firms, heightening the level of competition as companies strive for consumer preference.
