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Sean and Dylan Matthews are brothers who each own and operate sports memorabilia shops in neighboring towns. They decide to have a contest to see whose shop can be more profitable for the year. At year-end, Sean's records show sales of $105,000, cost of goods sold of $55,000, and operating expenses of $21,000. The records of Dylan's shop reveal sales of $108,000, cost of goods sold of $62,000, and operating expenses of $19,000. Dylan's shop also had other revenue of $3,000 received for allowing the shop to be used in taping a television show. Each brother claims to have won the contest. Provide explanations as to why each would think so, and then name the winner.
Market Price
The current cost for engaging in transactions involving assets or services.
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A type of bond that does not pay periodic interest but is issued at a discount to its face value and matures at face value.
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In finance, duration measures the sensitivity of the price of a bond or other fixed-income investment to a change in interest rates, reflecting the weighted average time until payments are received.
Maturity
The state or moment when a financial instrument, such as a bond or loan, reaches its due date and principal is to be paid back.
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