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RoseWind [281]
4 years ago
14

A firm issues a $5 million zero coupon bond with a maturity of four years when market rates are 8%. Assuming semiannual compound

ing periods, the total interest on this bond is:
A) $1,600,000.
B) $1,346,549.
C) $1,200,000.
Business
1 answer:
topjm [15]4 years ago
3 0

Answer:

B) $1,346,549

Explanation:

maturity of 4 years; t = 4

semi compounding period ; n = 2

rate; i = 8% = 8/100

future value; FV = 5,000,000

using FV = PV *[1 + (i / n )]^{(n * t)}

present value; PV = 3,653,451

PV is the amount generated when it was originally issued.

interest paid = 5,000,000 - 3,653,451

= 1,346,549

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<span>The difference may lie in the project life, sometimes referenced as the planning horizon. A project may have a large internal rate of return (irr), but a very short project life. A second project might have a lower irr, but a much longer life. In that case, the second project will return less per year, but will provide a return for many more years, resulting in a higher pw.</span>
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True or False: The term “academic training” refers primarily to formal classes taken in school.
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Explanation:

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Afina-wow [57]

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4 years ago
Wims, Inc., has current assets of $3,900, net fixed assets of $26,500, current liabilities of $3,400, and long-term debt of $7,5
STALIN [3.7K]

Answer:

equity = $19500

Explanation:

Given data:

current assets $3900

net fixed assets $26,500

current liabilities $3400

debt = $7500

Total liabilities = current liabilities + long term debt

                         = 3400 + 7500 = $ 10,900

Total assets = current assets + net fixed assets

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We know

total assets  = total liabilities + equity

30400 = 10900+ equity

equity = $19500

8 0
3 years ago
During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail
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According to the pyramid of corporate social responsibility, it was acting at the philanthropic responsibilities level.

<h3 /><h3>What is social responsibility?</h3>

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For more details about Social responsibility, click here:

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