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The 6-months risk-free zero rate is 2.84%, and the one-year zero rate is 3.17%. Assuming no-arbitrage, the yield-to-maturity on a $1,000 par of a one-year, 12% Treasury bond, that pays $60 after 6 months and $1060 after one-year, must be
Profit-Maximizing
The process or strategy undertaken by a company to increase its profits to the highest possible level.
Loss-Minimizing
A strategy employed by businesses to reduce financial losses under unfavorable market conditions, often by cutting costs or restructuring operations.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the number of units produced, giving a per-unit cost of production.
Profit-Maximizing
A strategy or point at which a business achieves its highest possible profit, with an optimal level of output and pricing.
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