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Marysya12 [62]
3 years ago
11

Zero coupon bonds: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understand

s that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?
Business
1 answer:
tatyana61 [14]3 years ago
3 0

Answer:

The answer is $649.93

Explanation:

price = M / (1 + i)^n

M= 1000

i= 0.09

n= 5

Therefore value of the zero coupon bond is 1000/ 1.09^5 = $649.93

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4 0
3 years ago
Mandy, an Adlerian group leader is helping group members to realize they have choices in their lives about which stimuli they pa
choli [55]

Answer:

Push button

Explanation:

Organisms respond to stimuli in order to survive in their given environment. It is the ability to adjust to different environmental factors that are beneficial or detrimental.

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Push button shows a person that they have choices in their lives about which stimuli they pay attention to and remember.

4 0
3 years ago
The ROI on sustainability efforts can be difficult to quantify because a. the payback period is on the same time frame. b. the p
mojhsa [17]

Answer:

B)the payback period is on a different time frame.

Explanation:

Return on sustainability investment can be regarded as performance measure that is been utilized in evaluation of the gains which is produced due to result of corporate sustainability initiatives as regards amount of money that is invested in those initiatives.

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It should be noted that The ROI on sustainability efforts can be difficult to quantify because the payback period is on a different time frame.

5 0
3 years ago
The company plans to dissolve in two years. At the present time, dividends at each date are set equal to the cash flow of $18,00
gogolik [260]

Answer:

$321 per share.

Explanation:

Given that

Annual cash flows  = $18,000

Number of shares outstanding = 100

Dividend per share = $180

Required rate of return = 8%

So by considering the above information, the present value of the share of a stock is

Present value of share = Dividend received × Present value of $1 received every year at the end of year 2  at 8%

= $180 × 1.7832

= $321 per share.

8 0
3 years ago
An insurance annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of 6.5 percent, com
bekas [8.4K]

Answer:

the amount that willing to pay is $44,591.11

Explanation:

The computation of the amount that willing to pay is as follows:

The Present Value of an Ordinary Annuity is

= Amount × [{1 - (1 ÷ (1 + rate of interest)^n} ÷ rate of interest]

= $1,000 × [{1 - (1 / (1 + 0.065 ÷ 4)^100} ÷ 0.065 ÷ 4]

= $44,591.11

Hence, the amount that willing to pay is $44,591.11

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0
3 years ago
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