Answer:
The rate of return is 7.20%
Explanation:
a) Assuming you purchased the bond for $880, in order to calculate the rate of return you earn if you held the bond for 25 years until it matured with a value $5,000 we would have to calculate the following formula:
Rate of Return = [FV/PV]1/n - 1
Rate of Return= [$5,000 / $880]1/25 - 1 = [5.6818]0.04 - 1 = 1.0720 - 1 = 0.0720, or 7.20%
Rate of Return= [5.6818]0.04 - 1
Rate of Return= 1.0720 - 1
Rate of Return=0.0720, or 7.20%
The rate of return is 7.20%
Answer:
The correct answer is Activity G has s slack time of 8 days.
Answer:
The interest paid on loan was at floating rate which means that the investor earning was lower because of lower interest rate than the interest rate he was expecting.
Explanation:
Because the bond was dependent on the floating rate in the market. The borrower kept paying the investor at the floating rate not at the fixed rate which would had increased its investment worth to $1800. As $1600 is less than $1800 so the interest rate agreed was floating rate interest.
<h2>Yes the statement is True. A contract tells an organization how must act and the consequences for failing to act properly.</h2>
Explanation:
It is true that a contract is an agreement which is stating rules and regulation and also the consequences which the company has to face if the rules are violated.
A contract,
- is an legal agreement
- is signed for specific period
- contains rules
- consists of benefits which the company will get
- also contains terms & conditions which might change from time to time
- should be signed by company as well as the party
- should even be signed by the witness of both the side
Answer:
PV=454.54
Explanation:
This problem can be solved applying the concept of future value, the 500 represents money in the future an the 10% is how that money is valued over time
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
solving for PV we have:
PV=454.54
