Answer:
Bond Price - Zero Coupon Bond = 260.8460 rounded off to 260.85
Explanation:
A zero coupon bond is a kind of bond which pays no periodic interest of coupon payments. Instead it is offered at a discount and it pays the par/face value at maturity. The difference between the par/face value and the issue price is the interest rate which is embedded in price of the bond. Thus, the formula to calculate the price of a zero coupon bond is as follows,
Bond Price - Zero Coupon Bond = Face Value / (1+r)^n
Where,
- r is the required rate of return
- n is the number of periods till maturity
Bond Price - Zero Coupon Bond = 1000 / (1+0.0695)^20
Bond Price - Zero Coupon Bond = 260.8460 rounded off to 260.85
Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
they might tell a little about their background history, hobbies like golf
Answer:
An effective advertising message tells customers the benefits of what you have to offer.
Explanation:
The main goal of an effective advertising message is to convince the potential customer population that their product is right for them and is the best choice in the current market. This is done by telling customers the benefits of what you have to offer. If the advertisement shows customer that the product provides a needed benefit to them it will be an efficient advertisement and convince them to buy it.
I guess the best option is perceived risk.
When Kia Motors offers a 10-year, 100,000 mile warranty for the Kia Soul automobile, its strategy is to reduce consumers' perceived risk and encourage purchases.