Answer:
-11.8%
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:
![price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }](https://tex.z-dn.net/?f=price%3D%5Cfrac%7Bprincipal%2Acoupon%7D%7B%281%2Bi%29%5E%7B1%7D%20%7D%2B%20%5Cfrac%7Bprincipal%2Acoupon%7D%7B%281%2Bi%29%5E%7B2%7D%20%7D%20%5Cfrac%7Bprincipal%2Acoupon%7D%7B%281%2Bi%29%5E%7B3%7D%20%7D%2B...%2B%5Cfrac%7Bprincipal%2Bprincipal%2Acoupon%7D%7B%281%2Bi%29%5E%7Bn%7D%20%7D)
so in this particular case that one year later there are 29 years to maturity so we have:
![price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }](https://tex.z-dn.net/?f=price%3D%5Cfrac%7B1%2C000%2A0.04%7D%7B%281%2B0.08%29%5E%7B1%7D%20%7D%2B%20%5Cfrac%7B1%2C000%2A0.04%7D%7B%281%2B0.08%29%5E%7B2%7D%20%7D%20%5Cfrac%7B1000%2A0.04%7D%7B%281%2B0.08%29%5E%7B3%7D%20%7D%2B...%2B%5Cfrac%7B1%2C000%2B1%2C000%2A0.04%7D%7B%281%2B0.08%29%5E%7B30%7D%20%7D)
![price=553.6638](https://tex.z-dn.net/?f=price%3D553.6638)
so as we have a higher rate the investment has the next return:
![return=\frac{553.66}{627.73} -1](https://tex.z-dn.net/?f=return%3D%5Cfrac%7B553.66%7D%7B627.73%7D%20-1)
![return=-11.8\%](https://tex.z-dn.net/?f=return%3D-11.8%5C%25)
<u>Answer:</u>
The correct answer for this is: Gross Rent Multiplier.
<u>Explanation:</u>
The type of a simplified alternative to capitalization of net income that does not take into account bad debts or expenses is called Gross Rent Multiplier (GMR).
Gross Rent Multiplier is used to find the approximate net incomes that does not include any bad debts or expenses.
Also, it is considered as the quickest tool to estimate the values, such as of a building.
<span>The answer for the above question is managerial. When Herbert took a new position at Galbrook Manufacturing Company, the firm was near insolvency. One of Herbert's first acts was to establish specific goals for sales growth and a strategy for achieving them. He also changed the organizational structure and developed an elaborate control system for keeping the company on track. Herbert is functioning in a(n) managerial position at Galbrook Manufacturing.</span>
good debt is for buying assets : things that will be worth more in the future
bad debt is for buying liabilities : things that will be worth less in the future
Answer:
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.[1][2][3] The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.[4][5] Any item or verifiable record that fulfils these functions can be considered as money.