"In connection with a new issue offering of a sought-after tech company issue, the underwriter offers shares to the officers of
1 answer:
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Answer:
Present value of zero coupon bond = $283
Explanation:
Provided that zero coupon bonds are to be issued.
In zero coupon bonds issue price is less than face value to meet the needs.
Interest rate = 13%
Duration = 10 years, Paid semiannually.
Thus periods = 20
Interest rate =
Therefore, Present value factor @6.5% for 20 periods = 0.283
Therefore, Value of bond today = $1,000 0.283 = $283
Answer:
correct option is A. True
Explanation:
given data
economy grows = 3 percent
total factor productivity grows = 2 percent
labor force grows = 2 percent
labor contributes = 40 percent
stock of capital rise = 0.33 percent
solution
we apply here Economy growth % formula that is
Economy growth % = total factor productivity + labor contributes × labor force grows + ( 1- labor contributes ) stock of capital .............1
put here value
3% = 2% + 40% (2%) + 60% C
3% = 2.8 + 0.6 × C
C =
C = 33.33 %
so given statement is true