Interest on bond investments on february 1, hansen company purchased $120,000 of 5%, 20-year knight company bonds at their face amount plus one month’s accrued interest. the bonds pay interest on january 1 and july 1. on october 1, hansen company sold $40,000 of the knight company bonds acquired on february 1, plus three months’ accrued interest. on december 31, three months’ interest was accrued for the remaining bonds. determine the interest earned by hansen company on knight company bonds for the year.

In the supply-and-demand schedule shown above, at the lowest price of $50, producers supply music players and consumers demand music players.

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x,y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note: