Dave needs to pay $1000 at the end of each year for the next 3 years. He purchased 3 different annual coupon bonds to match the liabilities exactly. The bonds have the following properties: Bond Time to Maturity Coupon Rate A 1 0.04 B 2 X C 3 0.05 All three bonds have a par value of $1,000 and can be redeemed at par. Dave purchased 0.9 of Bond A. Determine the coupon rate of Bond B to match the cash flows of the bonds to the cash flows of the liabilities. Assume fractional bond purchases are allowed.

If the supply of aisle seats and middle seats on an airplane is the same, but the demand for aisle seats is greater than the demand for middle seats, then the equilibrium price of aisle seats will be less than the equilibrium price of middle seats. true false

For june, gold corp. estimated sales revenue at $600,000. it pays sales commissions that are 4% of sales. the sales manager's salary is $285,000, estimated shipping expenses total 1% of sales, and miscellaneous selling expenses are $15,000. how much are budgeted selling expenses for the month of july if sales are expected to be $540,000.

Steele bicycle manufacturing company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. steele produces and sells only 10,000 bikes each year. due to the low volume of activity, steele is unable to obtain the economies of scale that larger producers achieve. for example, steele could buy the handlebars for $31 each: they cost $34 each to make. the following is a detailed breakdown of current production costs: after seeing these figures, steele's president remarked that it would be foolish for the company to continue to produce the handlebars at $34 each when it can buy them for $31 each. calculate the total relevant cost. do you agree with the president's conclusion?