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ozzi
3 years ago
11

Suppose a U.S. Treasury bond will pay $2,500 five years from now. If the prevailing interest rate on 5-year Treasury bonds is 4.

25%, compounded semiannually, the value of the bond today is closest to:
Business
1 answer:
Morgarella [4.7K]3 years ago
5 0

Answer:

The value of the bond today is closest to $1648.85

Explanation:

The value of the bond today is closest to:

Present Value = FV / (1+i)^n *m

FV= 2500

I = 4.25 = 0.0425

N= 5

M= 2

The value of the bond today = 2500 / (1+0.0425) ^5*2

The value of the bond today = 2500 / 1.516214468

The value of the bond today = 1648.853256

The value of the bond today = $1648.85

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So, I'm just wondering, but what is the best job in Mesa, AZ?
sergiy2304 [10]

Answer:

I'm not really sure but you can definitely google the highest paid jobs there.

4 0
3 years ago
A risk premium A. is the minimum amount a decisionminusmaker would pay to avoid taking a risk. B. is the maximum amount a decisi
photoshop1234 [79]

Answer:

D

Explanation:

The risk premium is the difference in interest rate between two parties. It can also be defined as the overprice that a country pays to be financed by markets, in comparison with other country. The risk premium is popular in the bonds market. For example, country A has bond interest rate of 4% and country B has bond interest rate of 6%, the risk premium is the difference between both interest rates: 2%. We can conclude that country B is riskier than country A because it offers a reward to investors (2% more) to acquire their debt.

According to this, the risk premium is the maximum amount that a decision maker needs to compensate risk. The risk premium is defined by how risky a country is. (I would say that it is the minimum amount needed to compensate risk, but this is the answer that better fits with the risk premium definition).

7 0
3 years ago
the three sections of the statement of cash flows includes all of the following: multiple select question. accounting operating
NARA [144]

The three sections of the statement of cash flows are operating activities, investments, and financial activities.

What is cash flow?

An essential tool for managing finances is a cash flow statement, which tracks an organization's cash flow. This report, along with the income statement and the balance sheet, is one of the three essential ones that determine a company's performance. Making a cash forecast is typically beneficial for facilitating short-term planning.

Businesses typically strive for a healthy cash flow because without it, they risk having to borrow money to keep the business afloat.

The cash flow statement lets you keep track of incoming and departing cash by displaying the source of that money. An organization's operational, investment, and financial operations all generate cash flow.

To learn more about cash flow click the given link

brainly.com/question/735261

#SPJ4

5 0
2 years ago
A new tax business, Taxes Done Right, will purchase a copying machine. After speaking with their financial advisor, they find th
Juli2301 [7.4K]

Answer: $2,845.57965

The principal to be deposited semiannually would be $2,845.58 (rounded to 2 decimal places)

Explanation:

Using compound formula below

A = p (1 + r/n)^nt

A =amount= $3,300

r = rate = 5% = 5/100 = 0.05

n = number of compounding rate (semiannually) =2 interest payments a year

t = time in years= 3

3,300 = p (1 + 0.05/2)^2(3)

3,300 = p (1 + 0.025)^6

3,300 = p (1.025)^6

3,300 = 1.15969342p

Divide both sided by 1.15969342

p = $(3,300/1.15969342)

p = $2,845.57965

p ≈$2,845.58 rounded to 2 decimal places.

4 0
3 years ago
In an effort to duplicate the stressors involved with working at a large company, researchers go to great effort to ensure that
Elan Coil [88]

The actions of the researchers in trying to recreate large company stressors is known as trying to increase<u> mundane realism.</u>

<h3>What is mundane realism?</h3>

This is a term in research that compares the experiment's setting to the real-world setting for similarity.

When scientists try to recreate real-world settings as much as they can, t would therefore increase mundane realism.

Find out more on mundane realism at brainly.com/question/13981459.

#SPJ12

3 0
2 years ago
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