Answer:
Its total cash flow at the end of year 3 is:
$792.
Explanation:
a) Data and Calculations:
Maturity of bond = 5 years
Face value = $1,000
Coupon rate = 8%
Amortization schedule for each year = 20% (100/5)
Bond’s Periodic Cash flows:
End of year 1 = $200 + $80 interest ($1,000 * 8%) = $280
End of year 2 = $200 + $64 interest ($800 * 8%) = $264
End of year 3 = $200 + $48 interest ($600 * 8%) = $248
Total cash flow at the end of year 3 = $792
Answer:
- <u><em>$31,858.57</em></u>
Explanation:
1. First calculate the value of a constant annuity of $1,500 for 15 years at the 8% return.
The formula is:
![PV=C[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}]](https://tex.z-dn.net/?f=PV%3DC%5B%5Cdfrac%7B1%7D%7Br%7D-%5Cdfrac%7B1%7D%7Br%281%2Br%29%5Et%7D%5D)
Where:
- PV is the present value of the annuity
- C is the constant pay,emt: $1,500
- r is the rate of return: 8%/12 = 0.08/12 =
- t is the number of periods: 15 years × 12 moths/year = 180
Substitute and compute:
![PV=\$ 1,500[\dfrac{1}{(0.08/12)}-\dfrac{1}{(0.08/12)(1+0.08/12)^{180}}]](https://tex.z-dn.net/?f=PV%3D%5C%24%201%2C500%5B%5Cdfrac%7B1%7D%7B%280.08%2F12%29%7D-%5Cdfrac%7B1%7D%7B%280.08%2F12%29%281%2B0.08%2F12%29%5E%7B180%7D%7D%5D)
<u>2. Discount to the present year.</u>
You calculate the value of the annuity 20 years from now.
Then, you must discount that value at the same 8% rate to have the price today.
Here, the value in 20 years is $156,960.89, r = 0.08/12, and t = 240 (20 × 12).
<span>According to Roosevelt, good trust
stayed within reasonable bound whereas, "bad" trust hurt societies
general welfare. Roosevelt insisted that it was essential to make the
distinction between the two because he had a strong preference to regulate
corporations for the public welfare rather than destroy them.</span>
The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of
diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
Read more on diminishing marginal returns here: brainly.com/question/13767400
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Advertising is a paid form of communication, delivered through media from an identifiable source, about a service, product and Idea.
<h3>What is advertising as a form of communication?</h3>
A product or service's customers can be reached through advertising. According to the Advertising Association of the UK, advertisements are messages that are paid for by those who send them and are meant to inform or persuade individuals who receive them.
The advertising industry is made up of businesses that advertise, agencies that produce the ads, media that run the ads, and a large number of individuals who take the ads all the way to the consumer or recipient, including copy editors, visualizers, brand managers, researchers, creative minds, and designers.
Learn more about advertising, here:
brainly.com/question/3163475
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