Answer:
The answer is: $655.20 (rounded to 2 decimal places)
Explanation:
A bond is a contractual agreement between the issuer and the holder which specifies the face value of the bond upon issuance as well as the interest (coupon) which the issuer must pay the holder in fixed instalments within a specified period. A bond's valuation is the determination of a fair market value for a bond given the required rate of return and period of repayment. The computation of such valuation is done by discounting future cash flows at the required rate of return. Given:
The coupon payments (C): $20
The required return (r): 8%
Face Value: $1, 000
The present values associated with the cash flows from each year are calculated as follows: C/(1 + r)^t where t is time period
Year 1: $20/(1+ 0.08)^1 = 18.51851852
Year 2: $20/(1+ 0.08)^2 = 17.14677641
Year 3: $20/(1+ 0.08)^3 = 15.87664482
Year 4: $20/(1+ 0.08)^4 = 14.70059706
Year 5: $20/(1+ 0.08)^5 = 13.61166394
Year 6: $20/(1+ 0.08)^6 = 12.60339254
Year 7: $20/(1+ 0.08)^7 = 11.66980791
Year 8: $(1000+20)/(1+ 0.08)^8 = 551.0742622
Present value of the bond is the sum of all the present values calculated above:$655.2016634 . This is the maximum amount the holder must be willing to pay. Note: at year 8, the issuer must repay the face value plus coupon.
Answer:
B. organizing
Explanation:
Organizing comes after the planning stage. It involves identifying tasks, grouping the tasks, assigning those tasks to individuals, and allocating resources to different units in the organization. In other words, organizing entails coordinating the finance, physical, and human resources of a company to achieve the planned results.
The organizing function is tasked with synchronizing the assets of a company for effective and efficient execution of its plans. Jane is sourcing for human resources that will assist the company in implementing its plans for summer and spring. She is organizing how tasks will be carried out in summer and spring.
Answer:
To maximize utility, Bill can will buy one banana and one apple.
Explanation:
Utility maximisation refers to the concept that individuals and firms seek to get the highest satisfaction from their economic decisions.
For example, when deciding how to spend a fixed some, individuals will purchase the combination of goods/services that give the most satisfaction.
The theory of Utility maximization highlights two fators
- combination of goods
- Highest satisfaction that is cost effective
if a banana cost half as much as an apple,
Cost of banana = cost of apple/2
cost of apple - cost of banana × 2
Assuming the cost of one banana is $1
The cost of buying 6 bananas = 6×$1 = $6
the same $6 can only buy 3 apples
Therefore the price of apples is $2
If the total amount available = $6,
It can purchase one banana and one apple.
<span>A trend that started to gain traction in the 1940s as a result of better technological innovation, was that of using vacuum tube technology in the manufacturing of the first generations of computers, due to the apparent efficiency of this innovation at the time.</span>
Because texas generally has low rates of low, individual effects on the texas political process are likely to be: low
This is further explained below.
<h3>What is texas's political process?</h3>
Generally, The development of problems marks the beginning of the policymaking process in Texas, which then continues on through five additional stages: the establishment of agendas, the selection of policies, the adoption of policies, the implementation of policies, and the assessment of policies.
In conclusion, Individual influences on the political process in Texas are anticipated to be modest because of the state's relatively low crime rate and low rate of poverty.
Read more about the texas political process
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