if the discount (or interest) rate is positive, the future value of an expected series of payments will always exceed the present value of the same series
True
What is a discount(or interest) rate?
An interest rate is the rate of return the present value of the series can over as an interest over the investment time horizon.
On the premise that the interest rate is positive, it means that there would positive value-added over the investment period which increases the present value to ensure that the future value exceeds the present value
In other words, a positive discount or interest ensures a higher future value
Find out more about future value on:brainly.com/question/24703884
#SPJ1
Answer:
The required return is 7.92%
Explanation:
Required return is defined as the minimum return which the investor expects to accomplish through investing in the project.
The required return would be computed as:
Required return = Dividend paid each year / Selling price per share
where
Dividend paid each year is $6,40
Selling price per share amounts to 480.80 per share
Putting the values above:
Required return = $6.40 / $80.80
Required return = 7.92%
Answer: 1. Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.
2. Walmart
3. Corporate bonds
Explanation:
1. Indeed even though Treasury bonds have a very low risk rating, they are not completely risk-less. They have a very low risk rating because they will always be honoured (US T - bonds that is) and so that eliminates the default risk. However, they are still exposed to maturity risk as well as inflation risk for the most part. This means that as interest rates rise therefore, their prices drop making them just a little but risky.
2. Walmart issued the bonds making them the issuer. The rest of the names are Underwriters.
3. Since the bonds were issued by a Corporation being Walmart, the bonds are Corporate Bonds.
Neoclassical economics focuses on providing more options while Behavioral economics focuses on helping people make better decisions with the options available.
A psychological approach to business, behavioral economics looks at how well people's expectations of utility and profit maximization match their actions and if they actually maximize predicted utility.
Contrarily, neoclassical economics views manufacturing costs as a key determinant of pricing a product. Thus, neoclassical economists contend that customers' primary determinant of choice is price.
Hence, the two have different beliefs about giving people options. While behavioral economics focuses on assisting people in making better decisions with the options at hand, neoclassical economics places greater emphasis on offering more options.
Want to know how would keynesian and neoclassical economics propose dealing with cyclical unemployment? Read here: brainly.com/question/28213854
#SPJ4
