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Mice21 [21]
2 years ago
10

Ric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of hol

ding the security is 6.80%. Assuming that both investments have equal risk and Eric's investment time horizon is flexible, which of the following investment options is priced lower?
An investment that matures in four years
An investment that matures in five years
Business
1 answer:
lutik1710 [3]2 years ago
4 0

Answer: An investment that matures in five years

Explanation:

Both investments may be of equal risks, but by virtue of having different maturity dates, they will not be priced the same.

This is because the discount rate (opportunity cost) will discount the maturity value more the longer the investment is such that the present value is lower.

4 year investment

= 1,000 / (1.068)^4

= $768.63

5 year investment

= 1,000 / (1.068)^5

= $719.69

The 5 year investment will have a lower present value and will be charged lower.

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The organizational environment is a set of forces and conditions that operate within an organization's boundaries. true false
julia-pushkina [17]

Answer:

False.

Explanation:

The organizational environment is a set of forces and conditions that operate outside an organization's boundaries and has the potential or capability of affecting its operations, resources and performance, either fully or in parts.

Some examples of an organizational environment are competitors or rivals, government policies, regulatory agencies, suppliers, customers etc.

8 0
3 years ago
True or False. For consumers, a credit card offers convenience.
evablogger [386]
True Because you just swipe the card and the pay your bills
6 0
3 years ago
A worker’s positive reaction to a negative performance review from an employer might be to ______.
wel

A worker’s positive reaction to a negative performance review from an employer might be option A "ignore the criticisms made at the review." Option A seems to be the best fit for this question because option B would I consider a negative reaction because addressing the employer over the negative review could start a fight and the other two seem too irrelevant for this question.

Hope this helps.

3 0
3 years ago
Read 2 more answers
What are 3 benefits of the Pay down credit card feature in Quickbooks Online?
enot [183]

Answer:

b or e

Explanation:

8 0
3 years ago
Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$
Serjik [45]

Answer:

$358,000

Explanation:

Calculation to determine how much cash should Sioux expect to collect during the month of April

April sales collected in April ($370,000 × 60%) $222,000

March sales collected in April ($340,000 × 40%) $136,000

Total cash collections in April $358,000

($222,000+$136,000)

Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000

6 0
3 years ago
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