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Zolol [24]
3 years ago
13

A​ zero-coupon bond is a bond that is sold now at a discount and will pay its face value at the time when it​ matures; no intere

st payments are made. A​ zero-coupon bond can be redeemed in 20 years for $ 10 comma 000. How much should you be willing to pay for it now if you want a return​ of: ​(a) 9​% compounded monthly question mark ​(b) 9​% compounded​ continuously?
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

P = $1664.12 pay with 9​% compounded monthly  

P = 1652.98 pay with  9​% compounded​ continuously

Explanation:

given data

time period = 20 year

amount = $10000

solution

we get here compound interest for 9​% compounded monthly that is express as

FV = P\times (1+\frac{r}{n})^{nt}    .................1

here P is principal amount and r is interest rate and n compound in year and FV is future value

$10000 = P\times (1+\frac{r0.09}{12})^{12\times 20}  

solve it we get

P = $1664.12 pay with 9​% compounded monthly  

and

for 9​% compounded​ continuously

FV = P\times e^{rt}   ............2

$10000 = P\times e^{0.09\times 20}

solve it we get

P = 1652.98 pay with  9​% compounded​ continuously

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U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is
Andrews [41]

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky

4 0
3 years ago
g Builtrite has calculated the average cash flow to be $16,000 with a standard deviation of $4000. What is the probability of a
Ganezh [65]

Answer:

89.44%

Explanation:

As we know that:

Z = (Cash Flow - Mean) / Standard Deviation

Here

Cash flow is the observed value which is the lower limit here and is $11,000

Mean is the average value of the sample and is $16,000

Standard Deviation is $4,000

By putting values, we have:

Z = ($11,000 - $16,000) / $4,000

= -1.25

The Z value lower than -1.25 is 0.1056 or 10.56%

This means that the probability of cash flow lower than $11,000 is 10.56% and the probability of cash flow greater than $11,000 will be

Probability of cash flow = (1- 0.1056) = 0.8944  which is 89.44%

6 0
3 years ago
The general ledger of Sandhill Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 58000 Deposits
Dafna1 [17]

Answer:

$687,000

Explanation:

Intangible Assets are identifiable assets of a non-monetary asset  and without physical substance. Intangible assets include trademarks, copyrights and goodwill that is acquired.

Important to note that Internally generated Goodwill  is not defined as an assets. Thus, deposits with advertising agency of $35,000 are not included within tangible assets

<u>Calculation of Total Intangible Assets will be :</u>

Intangible Assets Calculation = (Copyrights) $ 58,000  + (Goodwill Acquired) $560,000 + (Trademarks) $69,000

                                                 = $687,000

Therefore,

Sandhill's balance sheet as of December 31, 2021 should report total intangible assets of $687,000

5 0
3 years ago
Which factor could influence an employer to increase an employee's wages?
ElenaW [278]

Answer:

B most likley because i dont see hwo it can be A or D because both will lower an employees wages

Explanation:

7 0
2 years ago
ABC Tax Planning Service started business in January 2018. The company rented an office for $5,400 per month starting from Janua
Sholpan [36]

Answer:

balance in the Prepaid Rent account as of April 30 is $10800

Explanation:

given data

rent office =  $5,400 per month

rent paid = 6 month i.e January 1 to June 30

to find out

balance in the Prepaid Rent account as of April 30

solution

we know here that Period Expired till April 30 = 4 months ( January 1 to April 30)

and

so Period Balance = 2 Months  ( May 1 to June 30 )

so Prepaid Rent is = Balance Period × Rent per month

Prepaid Rent = 2  × 5,400

Prepaid Rent = $10800

so balance in the Prepaid Rent account as of April 30 is $10800

6 0
2 years ago
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