1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
never [62]
3 years ago
14

Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two years, and $100 in three ye

ars. If the Federal Reserve has set the risk-free interest rate at 8 percent, what is the proper current price of this investment?
Business
1 answer:
olya-2409 [2.1K]3 years ago
7 0

Answer:

The answer is $ 257.70

Explanation:

PV= Σ  of  discounted payments

PV = 100(1.08^-1) + 100(1.08^-2) + 100(1.08^-2)= <u>$ 257.70</u>

You might be interested in
The value proposition for the AARP brand is seen in what kinds of benefits for the members? (Select 3)
FrozenT [24]

Answer:

Ensuring products are well below the going market rate.

Quality of products offered.

Efforts to improve the lives of members.

Explanation:

3 0
2 years ago
The expression below shows a number in expanded form. What is the standard form of the number?(2×10)+(3×one tenth)+(9×one hundre
Colt1911 [192]
7,920.3 is my answer
6 0
3 years ago
Noelle, assistant manager at Green Gardens Restaurant, is preparing a questionnaire to help her evaluate customer satisfaction.
wariber [46]

Hi there, i cannot find the complete question so that i can pick an option from so im going to do my best to answer your question.

Explanation:

Noelle can use the question: on a scale of 1 to 4, rate your level of satisfaction of the meal at Green Gardens Restaurant. 1 to 4 can be represented as shown below.

1- very bad

2- bad

3- good

4- very good

With this sort of question to customers, Noelle would be able to get an understanding of how bad or well the restaurant is doing in terms of customer satisfaction.

Cheers.  

7 0
3 years ago
WEEEEEEEEE IM GIVING OUT POINTS
ziro4ka [17]

Answer:

sweet

Explanation:

5 0
3 years ago
Read 2 more answers
Hrustic Company issued $750,000 of 12% convertible bonds at face value on an interest payment date several years ago. The face v
mina [271]

Answer: The bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.

Explanation:

1) In order to find out the number of bonds issued we need to divide 750,000 (Total ) by 1000(Face value of each bond).Total number of bonds issues therefore are 750.

2) A 12 percent convertible bond means that the bond pays a coupon of 120 ( 0.12 * 1000) every year.

3) Each bond is convertible into 25 shares , which means if one bond is converted into common stock, the bond holder can earn $1750. We calculate this number by multiplying the number of shares which is 25 into the current market price of the shares which is 70.

4) Also the company is offering an extra  $500 per bond for converting it which means (500/25) an extra $20 per share.

5) So in total the bondholder by converting a bond and selling the shares he gets by converting it can earn $2250 per bond which they bought for a $1000 and gives them 120$ of interest every year.

6) SO to conclude the bondholders decided to convert the bonds into common stock because they believed that getting $2250 today is worth more than $120 interest every year and a $1000 principal payment at the end of the bonds life.

5 0
3 years ago
Other questions:
  • Consider 2 companies, each selling athleticware and each with a focused differentiation strategy. It is NOT possible for both of
    11·1 answer
  • Whic of the statement below is FALSE?
    5·1 answer
  • Paragon Company
    12·1 answer
  • What is a complex sentence​
    11·2 answers
  • Kirsten, a manager, is writing an analysis of her employer's current and possible future revenues. Which of the following could
    10·1 answer
  • The additional benefit of producing one more roast beef sandwich at a local deli is $2. The additional cost of producing one mor
    15·1 answer
  • Robles Manufacturing has eight different accounting policies that they need to disclose in their financial statements as well as
    6·2 answers
  • A company's income statement showed the following: net income, $134,000; depreciation expense, $30,000; and gain on sale of plan
    15·1 answer
  • Kamiar owed Rubio $5,000, which was due in one year. There was no dispute that a debt existed and no dispute over the amount. Ho
    13·1 answer
  • A raise in the price of a product
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!