The bond that has a face value of $1,000 has a duration of 10 years.
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What is a bond?</h3>
A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.
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Answer:
The data is missing, so I looked for a similar question (see attached image).
in a subgame perfect equilibrium, players take turns, one player (GM) will take turn an make an offer to the second player (Securitex), and then the second player will decide whether to accept the offer or not. The situations where the offer is rejected are not really an equilibrium since basically GM and Securitex get nothing out of the deal.
The two remaining options where Securitex accepts the offer must be analyzed in the following way:
After GM makes its move, is Securitex going to be better off or not. If GM makes a high offer and Securitex accepts it, then both will be better off. But if GM makes a low offer and Securitex accepts, it, GM will be better off but Securitex will be worse off, so that is not a real equilibrium.
The only option where a real equilibrium happens and is accepted by both, is that GM makes a high offer and Securitex accepts it. This would be option C.
The fact that organizations so effective and well known are able to create a demand where it doesn't exist remains solid. Huge companies don't offer only items; they offer style, economic status, and so forth, for example a person might not like Starbucks but will use it to tell others about his status. With the correct showcasing, they can adjust their worldwide image to the local needs. That is the reason Starbucks figured out how to open many stores in China, a nation with the convention of tea drinking. Starbucks used a way to promote where Chinese did not felt threatened of losing their tea drinking culture.
Answer:
- $651,234.54
Explanation:
Data provided in the question:
Cost of remodeling = $3.4 million = $3,400,000
Rent paid each year = $820,000
Duration, n = 5 years
Discount rate, r = 15% = 0.15
Now,
Present value of the amount rent paid each year = A × ![\left[ \frac{1-(1+r)^{-n}}{r} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%5D)
Here,
A = Rent paid each year
Thus,
Present value of the amount rent paid each year
= $820,000 × ![\left[ \frac{1-(1+0.15)^{-5}}{0.15} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2B0.15%29%5E%7B-5%7D%7D%7B0.15%7D%20%5Cright%5D)
= $820,000 × 3.352153
= $2,748,765.46
Therefore,
Benefit = Present value of the amount rent paid - Cost of remodeling
= $2,748,765.46 - $3,400,000
= - $651,234.54
Answer:
$336,000
Explanation:
Calculation for How much cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool
Total Order Processing activity cost pool
Wages and salaries: 60% × $360,000
Wages and salaries= $216,000
Depreciation: 35% × $200,000
Depreciation=$70,000
Occupancy : 50% × $100,000
Occupancy=$50,000
TOTAL =$336,000
Therefore the amount of cost that would be allocated in the first-stage allocation to the Order Processing activity cost pool will be $336,000
