Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
<u>To calculate the price of the bond, we need to use the following formula:</u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48
A.True, because he will not have the expense of having to pay employees
Answer:
(C) Red's Roofing
Explanation:
Free on Board indicates that once the seller leaves the package next to the shipping company's boat they are no longer liable for obligations, costs, or risks involved in the delivery of the product, and that is instead all transferred to the buyer. Therefore by accepting to purchase this product as this type of shipping then the loss is suffered by Red's Roofing.