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Wewaii [24]
3 years ago
12

Consider a $1000 bond that pays an annual interest rate of 8% and matures in two years. The prevailing interest rate has dropped

to 4%. Choose from the numbers to create the equation that will calculate the current price of this bond. Note that this bond will make two payments. Please place the earlier one on the left side of the plus sign.
Business
1 answer:
Anika [276]3 years ago
7 0

Answer:

Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2

Explanation:

The Coupon payment = 0.08 * 1000 = 80

The Payment at EOY 1 = 80

The Payment at EOY 2 = 80 + 1000 = 1080

market interest rate = 4%

Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2

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Sustainable development refers to A. placing restraints on a company's growth until all ancillary support services are in place
Semmy [17]

Answer:

The correct answer is letter "C": conducting business in a way that protects the natural environment while making economic progress.

Explanation:

Sustainable development is the capacity an institution has to satisfy individuals' needs without damaging the environment neither harming the atmosphere. To reach this stage there must be an equilibrium between the <em>economy, society, </em>and <em>the environment.</em> Sustainable development is difficult to be obtained with high poverty rates, habitats destruction, or indiscriminately resources exploitation.

4 0
2 years ago
Calls arrive at Lynn Ann​ Fish's hotel switchboard at a rate of 2.5 per minute. The average time to handle each is 20 seconds. T
defon

Answer:

50

Explanation:

8 0
3 years ago
The owner of a personal watercraft put an ad for its sale in the paper. Her neighbor saw the ad and told her that he wanted to b
WARRIOR [948]

Answer: D. The neighbor, because obtaining financing was a condition precedent.

Explanation:

Even though it wasn't listed in the written contract, there was the condition precedent that the contract would not be binding unless funding was obtained. Condition precedent is a condition that must happen for a contract to become enforceable.

Funding was not obtained so the contract cannot be enforced. The neighbor would therefore prevail so long as the owner admits that there was indeed a condition precedent.

3 0
3 years ago
Individuals with an internal locus of control believe that their actions will make a difference in their health.
andriy [413]
The answer is a, true. It is because a person with an internal locus of control has their own belief in terms of their health in a way that their behaviors and actions will be the ones responsible of having to know the status or what will likely happen to their health in which is also same in the given description above.
3 0
3 years ago
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of $3 in the upcoming yea
Otrada [13]

Answer: D. will be less than the intrinsic value of stock Y

Explanation:

Based on the information given above, the intrinsic value of Stock X will be calculated thus:

D1 = Dividend in next year = $3

g = growth rate = 7%

r = = 13%

Therefore, intrinsic value of Stock X will be:

= D1 / (r-g)

= 3 / (13% - 7%)

= 3/6%

= 3 / 0.06

= $50

Therefore, the intrinsic value of stock X is $50.

Intrinsic value of Stock Y will b calculated thus:

D1 = $4

g = 7%

r = 13%

Intrinsic value of Stock Y will be:

= D1 / (r-g)

= 4 / (13% - 7%)

= 4/6%

= 4 / 0.06

= 66.67

Intrinsic value of Stock Y is $66.67

Therefore, the intrinsic value of Stock X will be less than the intrinsic value of Stock Y

8 0
3 years ago
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