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Slav-nsk [51]
3 years ago
12

The British government has a consol bond outstanding paying pound 100 per year forever. Assume the current interest rate is 4 %

per year.
A. What is the value of the bond immediately after a payment is made?
B. What is the value of the bond immediately before a payment is made?
Business
1 answer:
aleksley [76]3 years ago
4 0

Answer:

Explanation:

From the question, we are informed that the British government has a consol bond outstanding paying pound 100 per year forever and that the current interest rate is 4% per year.

A. What is the value of the bond immediately after a payment is made?

The value of the bond here will be the present value of the payment on perpetuity. This will be payment divided by rate.

= $100/4%

= $100/0.04

= $2500

B. What is the value of the bond immediately before a payment is made?

The bond value here will be the value of the payment added to the value of the bond immediately after a payment is made which is calculated in (a) above. This will be:

= $100 + $2500

= $2600

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Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the compa
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$110,000

Explanation:

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Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r
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Answer and Explanation:

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3 0
3 years ago
Formal planning means specific goals are formulated and never reduced to writing but simply communicated.
Alexxx [7]
<span>The statement that formal planning means specific goals are formulated and never reduced to writing but simply communicated is false. 
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3 0
3 years ago
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