Question: please help with explanation QUESTION 10 Joe pre-orders a non-refundable movie ticket. He then reads a number of reviews of the movie in question that

QUESTION 10 Joe pre-orders a non-refundable movie ticket. He then reads a number of reviews of the movie in question that make him realize that he will not enjoy it. He goes to see it anyway, rationalizing that otherwise his money will have been wasted. Is Joe succumbing to the Sunk Cost Fallacy, and why? Yes, because he incurred no further costs by going to see the movie. Yes, since he invested a valuable asset, his time, in a project based on its previous costs. O No, because the cost of the movie was not recoverable and would have been lost whatever action he took. No, because going to see the movie means that the product of his initial investment was realized as originally planned. QUESTION 11 Which of the following statements is TRUE? O The yield to maturity of a bond depends on its total face value. O The internal rate of return (IRR) of an investment in a bond (and holding it until its maturity) is given a special name, the yield to maturity (YTM). O We cannot convert any bond price into a yield to maturity, and vice versa. O Prior to its maturity date, the price of a zero-coupon bond is always greater than its face value. QUESTION 12 Which of the following statements is TRUE? The annual percentage rate (APR) indicates the amount of interest including the effect of compounding O When interest rate is quoted as an annual percentage rate (APR), it is never necessary to adjust this interest rate to a time period that matches that of our cash flows. O The effective annual rate (EAR) is always less than the annual percentage rate (APR). The annual percentage rate (APR) indicates the amount of simple interest earned in one year
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