Math 504 Due April 28 2020it Is Important For You To Watch The Video ✓ Solved

MATH 504 Due April 28, 2020 It is important for you to watch the video before proceeding with the assignment. Paper will not be graded if the instructions are not followed properly as mentioned in the video whose link is provided below. Handout: Problem 8.4-part c) Before answering about the Euclidean postulates please go to the link below: 1. Watch the video “ How to play a pen cast.mp4†3. Following the instruction in the video “ How to play a pencast.mp4†play the file which is named as “Math 560 Euclidean Postulates Pencast.pdf†1.

Discussion1 Managerial Finance: 1 page references in APA format use text books as references: 1) Please explain why bond prices are subject to changes in interest rates. 2) describe the characteristics of a bond and provide an example of a firm or government entity that has recently issued (sold) these securities. Text Book : Brealey, Myers and Marcus, Fundamentals of Corporate Finance , 10 th Edition, McGraw-Hill Irwin, 2020; ISBN . Discussion2_ Organizational Economics: 1 page references in APA format use text books as references: When materials are stored in inventory for a period of time before being used in the production process, the accounting cost and economic cost differ if the market price of these materials have changed from the original purchase price.

Accounting cost is equal to the actual acquisition cost and economic cost is equal to the current replacement cost. After reading the articles “U.S. Car Business in Major Shift†and “Car Making in Americaâ€, which cost do you feel the U.S. Car industry (GM, Ford, etc.) is most affected by – accounting or economic cost? Text book : Managerial Economics: Applications, Strategy, and Tactics (14th Edition) James McGuigan, R. Charles Moyer, & Frederick Harris Cengage Learning, © 2017, 2014 ISBN-13: ISBN-10:

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Discussion 1: Managerial Finance

Why Bond Prices are Subject to Changes in Interest Rates

Bond prices and interest rates share an inverse relationship, meaning when interest rates rise, bond prices generally fall, and when interest rates fall, bond prices typically rise. This dynamic can be explained through the principles of present value and opportunity cost. When an investor purchases a bond, they are essentially lending money to the issuer—whether it be a corporation or governmental body—at a fixed interest rate known as the coupon rate. The total value of that bond is dependent on the cash flows it generates in relation to prevailing market interest rates (Brealey, Myers, & Marcus, 2020).
As market interest rates fluctuate, the present value of the future cash flows generated by the bond also changes. For instance, if interest rates rise, new bonds might be issued at higher coupons, making existing bonds with lower coupon rates less attractive. Consequently, the price for older bonds drops to align their yield with the new market rate (Moyer, 2017). Conversely, if market interest rates fall, existing bonds become more attractive as their fixed coupon payments are higher compared to the newly issued bonds, leading to an increase in bond prices.
Furthermore, the time to maturity of a bond also plays a vital role in its sensitivity to interest rate changes. Long-maturity bonds exhibit greater price volatility compared to short-maturity bonds. For instance, a bond with 30 years to maturity will see a more significant price change in response to interest rate movements compared to a bond with only 5 years left to maturity (Brealey et al., 2020).
Recently, many organizations have issued bonds in response to changing economic conditions. One example is the Boeing Company, which issued bonds to raise capital amidst the downturns experienced during the COVID-19 pandemic and subsequently faced interest rate fluctuations impacting its bond pricing.
In summary, the relationship between bond prices and interest rates is a fundamental concept in finance, representing changes in market conditions, investor behavior, and economic indicators that can affect the value of fixed-income securities.

Discussion 2: Organizational Economics

Accounting Cost vs. Economic Cost in the U.S. Car Industry

In the context of inventory management, particularly in industries like automobile manufacturing, the distinction between accounting cost and economic cost is crucial. Accounting costs reflect the actual expenditure incurred for acquiring materials, while economic costs represent the current replacement costs of those materials (McGuigan, Moyer, & Harris, 2017).
In the U.S. car industry, as highlighted in articles such as “U.S. Car Business in Major Shift” and “Car Making in America,” market prices of raw materials and components are subject to volatility influenced by global supply chains, trade tariffs, and shifts in demand. For instance, if the market price of steel rises due to increased demand or supply chain disruptions, the current replacement value of inventory components will exceed the historical acquisition costs recorded in accounting.
Thus, manufacturers like General Motors or Ford face significant implications from economic costs rather than just accounting costs. As production methodologies evolve and shifts towards electric vehicles gain momentum, the relative costs of materials now acquired can markedly differ from their past prices. This change means that even if the accounting costs remain stable based on historical inventory records, firms must consider the economic costs for financial planning and strategy adaptation purposes (McGuigan et al., 2017).
In the current landscape, where materials such as semiconductors and lithium for batteries are in high demand, companies may face decision-making challenges related to keeping existing inventory or purchasing at current market rates. This pricing volatility emphasizes the necessity for organizations to evaluate economic costs rigorously, guiding their inventory management practices and broader financial strategies.

References

Brealey, R. A., Myers, S. C., & Marcus, A. J. (2020). Fundamentals of Corporate Finance (10th ed.). McGraw-Hill Irwin.
McGuigan, J. R., Moyer, R. C., & Harris, F. (2017). Managerial Economics: Applications, Strategy, and Tactics (14th ed.). Cengage Learning.
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