Answer:
e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.
Explanation:
Based on this information,Adonis Corporation is issuing a coupon paying bond.
- The $286,827 that they receive is the market price/ market value of the bond.
- The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
- Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
- The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
- <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
I’d say Outcome visualization since it involves seeing yourself achieving your goal.
Answer:
The IRR (in %) for Project A is 31%.
Explanation:
Let IRR be x%
At IRR, present value of inflows = present value of outflows.
218917 = 25700/1.0x + 53000/1.0x^2 + 58000/1.0x^3 + 420,000/1.0x^4
solving for x, we find:
x = 31%
Therefore, The IRR (in %) for Project A is 31%.
Governments money is usually spent for weapons or vaccines for sicknesses.