Question

D Burgers will produce 3.200 mill hamburgers at a total cost of $4.400 mill. In

a good year it can produce 4.400 mill hamburgers at a total cost of $5.000 mill

a. What are the fixed costs of hamburger production?

b.What is the variable cost per hamburger?

c.What is the average cost per burger when the firm produces 1 million hamburgers?

d. What is the average cost per burger when the firm produces 2 million hamburgers?

 

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Question

Question

1 of the bond has a coupon rate of 7.0%, the other coupon has a rate of 9.0%. Both bonds pay interest annually,

both have 5-year maturities, and sell at a yield to maturity of 8.0%.

If their yields to maturity next year are still 8.0%, what is the rate of return on each bond Bond A and Bond B?

Bond A?

Bond B?

has a coupon rate of 7.0%, the other coupon has a rate of 9.0%. Both bonds pay interest annually,

both have 5-year maturities, and sell at a yield to maturity of 8.0%.

If their yields to maturity next year are still 8.0%, what is the rate of return on each bond Bond A and Bond B?

Bond A?

Bond B?

 

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