Erisk-free yield curve is flat at 6% per annum. what is the value of an fra where the holder receives libor at the rate of 8% per annum for a six-month period on a principal of $1,000 starting in two years? the forward libor rate is 6%. all rates are compounded semiannually. a. $9.12 b. $9.02 c. $8.88 d. $8.63

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%

Experienced problem solvers always consider both the value and units of their answer to a problem. why?

Amonopolist’s inverse demand function is p = 150 – 3q. the company produces output at two facilities; the marginal cost of producing at facility 1 is mc1(q1) = 6q1, and the marginal cost of producing at facility 2 is mc2(q2) = 2q2.a. provide the equation for the monopolist’s marginal revenue function. (hint: recall that q1 + q2 = q.)mr(q) = 150 - 6 q1 - 3 q2b. determine the profit-maximizing level of output for each facility.output for facility 1: output for facility 2: c. determine the profit-maximizing price.$