Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature in 1 year while Bond J matures in 4 years. Bond F and J have a face value of $10,000 while Bond P has a face value of $11,000 . If the interest rate is 15%, rank the three bonds from highest present value to lowest present value
a. Bond F, Bond P, Bond J
b. Bond P, Bond F, Bond J
c. Bond J, Bond F, Bond P
d. Bond P, Bond J, Bond F
e. Bond F, Bond J, Bond P
B
Economics
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A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If sales tax is 8% and is levied on the buyer, then the buyers top dollar price is
a. $525,000 b. $523,800 c. $485,000 d. $486,111
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Does minimizing average total costs ensure that a firm is maximizing its profits?
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