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marin [14]
3 years ago
6

A zero coupon bond: is sold at a large premium. can only be issued by the U.S. Treasury. has a market price that is computed usi

ng semiannual compounding of interest. has less interest rate risk than a comparable coupon bond. has a price equal to the future value of the face amount given a positive rate of return.
Business
1 answer:
kupik [55]3 years ago
5 0

Answer:

A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

D. has less interest rate risk than a comparable coupon bond.

E. has a market price that is computed using semiannual compounding of interest.

Answer is : B

Explanation:

In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.

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Suppose you want to realize a future value of $150,000 in 30 years on an investment you make. The average annual rate of return
tekilochka [14]

Answer:

PV= $12,111.93 = $12,112

Explanation:

Giving the following information:

Future Value (FV)= $150,000

Interest rate (i)= 8.75% = 0.0875

Number of periods (n)= 30

<u>To calculate the present value (PV), we need to use the following formula:</u>

PV= FV/(1+i)^n

PV= 150,000 / (1.0875^30)

PV= $12,111.93

4 0
2 years ago
In which of the following market structures would X-inefficiency be most likely to exist?Perfect competition.Monopoly.Oligopoly.
Mademuasel [1]

Answer:

Monopoly

Explanation:

Monopoly is a market structure where only one firm controls the market share and earn abnormal profits. In a monopoly market, a producer or a supplier earn abnormal profits, which is why they don't try to control the cost of production because they can sell the good at any price. This situation where the cost of production increases, it creates X-inefficiency.

6 0
3 years ago
Kite Sales. Wendy is president of a business that manufactures kites. The kites of her company, ABC Kites, are sold to large toy
LuckyWell [14K]

Answer:

She violated the duty of loyalty

Explanation:

One of the fiduciary duties of a director is to always act in the best interest of the company .

Similar to this is the duty of loyalty that prevents the director from acting against the interest of the company and also guide the director against activities that could bring conflict of interest whereby he is involved in reaping personal benefits from the position she occupies .

This describes Wendy's action of personal dealing based on her position as the president of Kite sale

5 0
3 years ago
lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou
zhannawk [14.2K]

-0.01 billion is lilliput's  a budget deficit. Total expenditure minus total receipts is the fiscal deficit (excluding borrowings). Revenue outlays plus capital outlays are equal to the revenue inflows plus capital inflows minus borrowings.

Despite being primarily utilised by governments, this has a wide range of applications for both people and companies. A government has a budget deficit when it spends more in a given inflows than it brings in the through taxes, for example. As a straightforward illustration, consider a government that receives $10 billion in revenue one year but spends $12 billion, creating a $2 billion budget deficit.

To learn more about  budget deficit, click here.

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7 0
1 year ago
Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three
gizmo_the_mogwai [7]

Answer:

Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three  other students. One of your roommates has to suddenly move out! How much will your share of  the expenses increase to, until you can find a new roommate?​

if $750= 1 month

?= 12 months

then we have; $9000 per year shared by 4 friends

9000/4= $2250 per person in a year and

2250/12= $187.5 per person in a month

If someone left, then we have

$750= 1 month

?= 12 months

$9000/3= $3000 per person in a year

$3000/12= $250 per person in a month

So therefore, the share of expenses monthly increases from $187.5 to $250

Explanation:

7 0
3 years ago
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