Answer:
b. 1,062.81
Explanation:
the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:
where: principal as said before is the value lended, coupon is the rate of interest paid, i is the interest rate and n is the number of periods
so applying to this particular exercise, as it is not said we will assume that 6% and 7% are interest rate convertible seminually, so the price of the bond will be:
price=1,062.81
take into account that here we are asked about semianually payments, so in 8 years there are 16 semesters.
Answer: Competitive analysis
Explanation: Competitive analysis can be defined as the analysis done by the management of a business entity to evaluate the strength and weakness of competitors in the market. It is usually done for company marketing.
In the given case, Acer is evaluating its competitors characteristics for establishing its strategy. Thus, we can conclude that the correct option is C.
Answer:
B. $4,520.64
Explanation:
The computation of the down payment is shown below:
= {Monthly payment × (1 - 1 + interest rate)^-number of periods} ÷ {Interest Rate}
where,
Interest Rate = 8% ÷ 12 months = 0.66667
= {500 × (1 - 1 + 0.67)^-48} ÷ {0.67}
After solving this, the amount is $20,480.956
Now the down payment is
= $25,000 - $20,480.956
= $4,519.04 approx
Answer: Japan has the higher real interest rate.
Explanation:
Japan:
Nominal interest rate = 5%
Inflation rate = 2%
Real interest rate = Nominal interest rate - Inflation rate
= 5 - 2
= 3%
United States:
Nominal interest rate = 7%
Inflation rate = 6%
Real interest rate = Nominal interest rate - Inflation rate
= 7 - 6
= 1%
∴ Japan has the higher real interest rate.
They are typically 1 to 1 1/4 inches
Hope this helps, good luckkk :)
