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vagabundo [1.1K]
3 years ago
12

Perpetuities have:

Business
1 answer:
sveticcg [70]3 years ago
7 0

Answer:

b) Equal payments and an infinite life

Explanation:

A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.

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The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The interest rate charged to BBB corporate borrow
azamat

Answer:

Answer is option c.

Default Risk and Liquidity Risk

Explanation:

  • Default risk - because AAA and BBB differ in credit quality
  • Liquidity risk - because BBB could potentially have lower liquidity than AAA bond (more stable and could be more traded)
5 0
2 years ago
Lin is making a presentation about road safety and wants to add images of road signs.
Studentka2010 [4]

Answer:

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Explanation:

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3 0
3 years ago
Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,070 2 1,300 3 1,520 4 2,2
Leni [432]

Answer:

Total FV= $6,765.82

Explanation:

Giving the following information:

Year Cash Flow 1 $ 1,070 2 1,300 3 1,520 4 2,260

Discount rate= 8%

<u>To calculate the total future value, we need to use the following formula on each cash flow:</u>

FV= Cf*(1 + i)^n

FV1= 1,070*(1.08^3)= 1,347.9

FV2= 1,300*(1.08^2)= 1,516.32

FV3= 1,520*1.08= 1,641.6

FV4= 2,260

Total FV= $6,765.82

5 0
2 years ago
When mi ola's purchasing manager places the weekly order for new bikinis based on how many of each type have sold that week, thi
zaharov [31]
I believe, this programmed decision could best be described by: Classical Model.
In the classical model of decision making, we based the decision on something that is the most logical and rational.
This model commonly provide the most objective solution but often fail to see how emotions and relationship between members could influence the decisions.
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2 years ago
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