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2 years ago

What do you mean by the saving-borrowing-investing cycle?

1 answer:

6 0

The saving-borrowing-investing cycle starts with the person borrowing funds to start a business. This is their seed capital to purchase and invest in the future. Then if the business grows, they'll be able to bring back the borrowed funds. The cycle continues. I hope this answer helped you.

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LRQ Inc. issued bonds on April 18, 2006. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of

ankoles [38]

Answer:

$857

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 5.5% = $55 annually = $27.5 semiannually

Number of periods = n = (April 18, 2036 - April 18, 2020) years x 2 = 16 x 2 period = 32 periods

Market Rate = 7% annually = 3.5% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = 27.5 x [ ( 1 - ( 1 + 3.5% )^-32 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^32 ]

Price of the Bond = $524.29 + $332.59 = $856.98 = $857

8 0

2 years ago

You have just won the state lottery and have two choices for collecting your winnings. You can collect $109,000 today or receive

miskamm [114]

Answer: Im not doing the math but Option 2 is the better option

Explanation:

6 0

2 years ago

he appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 $700 2 700 3 0 4 1

rewona [7]

Answer:

Thus, the present value is $2045.52.

Explanation:

Use the below formula to find the present value:

Present value = FV ÷ (1 + r/4)^(n*4)

Present value :

$=\frac{700}{(1 + \frac{0.08}{4} )^{1 \times 4} } + \frac{700}{(1 + \frac{0.08}{4} )^{2 \times 4} } + \frac{0}{(1 + \frac{0.08}{4} )^{3 \times 4} } +\frac{1100}{(1 + \frac{0.08}{4} )^{4 \times 4} } \\ \\= \frac{700}{1.0824}+\frac{700}{1.1716} +0+\frac{1100}{1.3727} \\= 2045.52$

Thus, the present value is $2045.52.

4 0

2 years ago

Determine what punctuation rule is illustrated by the following sentence. I have never met someone who does his job so well; he

damaskus [11]

Punctuation rule is illustrated by the sentence, Use a semicolon to join closely related independent clauses.

1. Parallelism Is Required for All Punctuation

This means that whenever a comma or a dash is used to break up a main clause, the same punctuation marks must be used both at the beginning and the end of the clause. It further implies that you cannot use a semicolon to distinguish between a single item in a list.

2. Every Clause Needs a Colon at the End

The main clause needs to end with a colon. A colon can be used to introduce a list, elaborate, or restate a sentence if it is already complete.

3. Semicolons Are Used to Emphasize Equally

In a compound sentence, a semicolon can be used in place of a coordinating conjunction to link two related independent clauses.

Learn more about Punctuation, here

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5 0

4 months ago

_____ comes into play when a manager makes a decision with a bias weighing short-term costs and benefits more heavily than longe

Stolb23 [73]

Answer:

Discounting the future cash flows

Explanation:

The reason is that the future returns will devalue with money received because of the Inflation. The money received after some years will result in fall in its value. So the amount received after some year of an equal amount to the amount today will not be worth the same. So discounting of future value receipts helps in decision making in todays value.

6 0

3 years ago