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Bogdan [553]
3 years ago
12

g Declaring bankruptcy by the bond issuing firm ______ . a. has no impact on value of its bonds b. increases the value of its bo

nds c. decreases the value of its bonds d. makes the value of its bonds worthless
Business
1 answer:
Scilla [17]3 years ago
4 0

Answer:

c. decreases the value of its bonds

Explanation:

There is a significant decrease in the value of the bond if the firm declares bankruptcy.

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You can receive 400,000 five years from today or 1,000,000 thirty years from today. what interest rate makes them equivalent?
deff fn [24]

Answer:

3.73%

Explanation:

The computation of the rate of interest that makes the equivalent is shown below:

As we know that

Present value=Cash flow × Present value discounting factor ( interest rate% , time period)

Let us assume the interest rate be x

where,

Present value of $400,000 is

= $400,000 ÷ 1.0x ^5

And,

Present value of $1,000,000 be

= $1,000,000 ÷ 1.0x^30

Now eqaute these two equations

$400,000 ÷ 1.0x^5 = $1,000,000 ÷ 1.0x^30

(1.0x^30) ÷ (1.0x^5) = $1,000,000 ÷ $400,000

1.0x^(30 - 5)=2.5

1.0x^25=2.5

1.0x = (2.5)^(1 ÷ 25)

x =1.03733158 - 1

= 3.73%

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Which type of business is likely to have purchasing activities related primarily to consumable goods rather than products that w
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Answer:

service-oriented business

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Ape.x verified

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galben [10]

Answer: C. marginal product of the last worker hired is less than the marginal product of the previous worker hired

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Explanation:

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