Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
<u>To calculate the price of the bond, we need to use the following formula:</u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48
Answer:
the answer youre looking for is C. digital
Answer:
Expected return on the market = 11.58%
Explanation:
MRP = Market risk premium
RFR = Risk free rate
ERM = Expected return on market
![MRP = \frac{0.155-0.128}{1.45-1.14}=\frac{0.027}{0.31}= 0.0871](https://tex.z-dn.net/?f=MRP%20%3D%20%5Cfrac%7B0.155-0.128%7D%7B1.45-1.14%7D%3D%5Cfrac%7B0.027%7D%7B0.31%7D%3D%200.0871)
MRP = 8.71%
RFR = 0.155 - (1.45*0.0871) = 0.155 - 0.126295 = 0.0287
RFR = 2.87%
ERM = MRP + RFR = 8.71% + 2.87%
ERM = 11.58%
Hope this helps!
Answer:
True
Explanation:
When a company increases the amount of business units it is harder to be informed about each business unit. When the manager try to understand and review all the information about the business units the time is not enough, in that case the sustainability of a multiple units business model is a challenge. When this happens, the manager can empower a business unit manager, so the corporate manager just needs to know the basic information and be informed about the decisions and results obtained evaluating the results of the business unit.