Answer: $3,704,040
Explanation:
The issue/ selling price of a bond is calculated by the formula:
= Present value of coupon payments + Present value of face value
The coupon payments will be an annuity and in cash terms are:
= 8% * 4,500,000
= $360,000
Selling price:
= (360,000 * Present value of an ordinary annuity factor, 11%, 10 periods) + (4,500,000 * Present value discount factor, 11%, 10 periods)
= (360,000 * 5.889) + (4,500,000 * 0.352)
= $3,704,040
Answer:
B. If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today
Explanation:
From the information given, that do not contain the price of the bond it is predictable that the Bond A will have higher value than Bond B if the YTM remains at 8% because the Coupon rate for bond A is higher than YTM. instead, the coupon rate for bond B is lower than YTM.
It also can be inferred that Bond B is trading as discount whereas Bond A is trading as Premium.
Debit Card - Payday loan and cash advances are terrible ways to stick to a budget. Credit cards, you have to pay them back. Debit card would be the best choice because it comes out of your account immediately and you can track that.
Promotional pricing is the correct answer
Answer: The correct answer is "Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.
Explanation: Deflation was bad for farmers because the value of their debt stayed the same while the price of their products fell.
The farmers who asked for loans had to return the same nominal value that they borrowed (whose real value was higher since the price level decreased) and lowering the price of the products they sold obtained less profit margin.