1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
chubhunter [2.5K]
3 years ago
7

A risk-free bond will pay you $1,000 in 2 years and nothing in between. The annual discount rate is i=27.5% compounded annually.

What is the bond's present value?
Business
1 answer:
denis23 [38]3 years ago
3 0

Answer:

$615.15

Explanation:

Since we have only one cashflow at the end of 2 years and no coupons, find present value (PV). You can use a financial calculator and input the following;

Future value ; FV = 1,000

Duration; N = 2

Interest rate; I/Y = 27.5%

Coupon payments ;PMT = 0

then compute present value; CPT PV = 615.148

Therefore, the bond's PV is $615.15

You might be interested in
The primary purpose of parks and natural areas is for recreation and human use. true or false
Elena L [17]
<span>True. Parks and natural areas provide an avenue for humans to conduct adventure programs and activities. with proper stewardship and preservation, parks and natural areas provide a conducive place for outdoor recreation and education programs that may lead to increased health, wellness, and community participation.</span>
5 0
3 years ago
Select the correct answer. If a company produces, promotes, and sells bags made of recycled paper, which concept is it using? A.
igomit [66]

Answer:

If a company produces, promotes, and sells bags made of recycled paper, which concept is it using?

The concept used by the company that produces, promotes, and sells bags made of recycled paper is societal marketing concept

Explanation:

This concept simply entails running of a long term interest which does not only suits customers wants alone but also makes the priority of the company paramount.

4 0
3 years ago
Which strategy is an example of how companies may upgrade themselves to meet changing customer preferences?
never [62]

The best example of how companies are upgrading themselves to meet changing customer preferences is personified in option (C) making online shopping services available.

Since customers nowadays prefer to shop online more often than not, many companies are now providing online marketplaces in combination with their traditional brick and mortar stores. Some companies do not even have a pop up store – they purely do their transactions online.

8 0
3 years ago
When it comes to decision making, in a limited partnership there is no separation of ownership and control limited partners have
kati45 [8]

Answer:

yes, there is no separation between the administration and ownership in a partnership.

the partnership contract stipulates which partners have the decision making ability and which partners don't. We cannot say specifically that limited partners have no say in decision making.

Moreover, the control of the partnership is not based on the amount invested like in corporations. that too is based on the contract. however, in practice, yes if you have more money invested in the business, you have more influence.

Explanation:

7 0
3 years ago
Read 2 more answers
Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit
VLD [36.1K]

Answer:

12,497 units

Explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

                           = $400,000 ÷ $97.00 x 33%

                           = 12,497 units

Sheryls's business need to sell  12,497 units to break even

4 0
3 years ago
Other questions:
  • If people speculate that a run on one bank will cause a run on all banks in the financial​ system, and this speculation proves​
    8·1 answer
  • Honest tea considers themselves a​ mission-driven business. they have decided that it is important to understand the communities
    9·1 answer
  • Suppliers are more likely to be powerful relative to the firms to which they sell their goods and services if: 1) differentiatio
    7·1 answer
  • Tablet Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and
    9·1 answer
  • List at least four ways someone can prepare to
    9·1 answer
  • As old central business districts and industrial zones in more developed countries lost businesses and employment in the mid- to
    7·1 answer
  • Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
    10·1 answer
  • Lolita’s team meets every Tuesday morning. Lolita always brings doughnuts to these meetings, and she always starts the meeting b
    14·2 answers
  • Question: You have recently been appointed as a marketing manager for a marketing consultancy firm, and you have been asked to c
    7·1 answer
  • Assessing how customers in the target market evaluate price is the _______ stage in the pricing process.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!