We estimate the cost to drive for Uber each day is $30 (amortize the fees associated with the initial background checks, insurance and registration required on the car, cleaning of the car, etc.) and the marginal cost per trip is $10.00 (i.e. labor, maintenance, etc.). If the relationship between quantity demanded and price and the cost schedule is provided as follows, how many rides should the first Uber driver supply: ??=??−? and ??=??+???? How many Uber rides should you produce to maximize profits? Submit an Excel spreadsheet solution.

On January 1, 2019, Kelp Corporation acquired bonds with a face value of $700,000 for $677,829.11, a price that yields a 11% effective annual interest rate. The bonds carry a 10% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.

Required:

Consider two bonds with $1,000 face values that carry coupon rates of 5%, make annual coupon payments, and exhibit similar risk characteristics. The first bond has two years to maturity whereas the second has three years to maturity. The yield to maturity of these investments is 5%. If the yield to maturity rises by half a percentage point, what are the respective percentage price changes of the two bonds? Find the exact answer and approximate answers using the duration rule and the duration-convexity rule. Discuss the quality of the approximation.

1. Calculate the price if a 5% coupon, $1000 face value 5-year bond if the appropriate annual discount rates are 3% for the first 2 years and 8% for the final three years. Calculate this bond’s yield to maturity or average annual yield. Calculate your return if you hold this bond for one year. If we assume the change in annual rates is due to expectations of inflation, what does the bond market thing inflation is going to do in the future? Please show all work and do not use excel or a finance calculator.

The interest rate is 5 percent initially. Now the Money Supply increases and the interest rate declines to 3.5 percent in the short run. Let us assume two scenarios.   In the first scenario, the interest rate ends up at 4 percent in the long run, but in the second scenario it ends up at 6 percent in the long run. State what we are assuming about the liquidity effect (LE), income effect (IE), price level effect (PLE), and the expected inflation effect (EIE) for each scenario.

Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of $165.73 for the next 60 months and this beauty can be​ yours!" The sticker price of the car is $7,800. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

If you bought the​ car, what monthly interest rate would you be​ paying?

________% ​(Round to five decimal​ places.)

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Haunted Forest, Inc.is selling fog machines. Use the following information about Haunted Forest, Inc. to answer the following questions. Average selling price per unit $328. Variable cost per unit $206 Units sold 358 Fixed costs $15,489 Interest expense $3,481 Based on the data above, what will be the resulting percentage change in earnings per share if they expect units produced and sold to change 9.6 percent? (You should calculate the degree of total (combined) leverage first).

Consider the following two, completely separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first economy, all stocks move together – in good times all prices rise together and in bad times they all fall together. In the second economy, stock returns are independent – one stock increasing in price has no effect on the prices of other stocks. Assuming you are risk-averse, and you could choose one of the two economies in which to invest, which one would you choose? Explain.