Answer:
James Madison is known as the Father of the Constitution, and he worked very hard to limit the powers of the government branches, so that no government branch would be more powerful than the other two. He was a great supporter of the Bill of Rights, which also limited the power of the government towards the citizens of the nation.
This specific quote refers to the checks and balances system that prevents any of the three branches of the US government; executive, legislative and judicial, from becoming too powerful.
Answer:
Present value of zero coupon bond = $283
Explanation:
Provided that zero coupon bonds are to be issued.
In zero coupon bonds issue price is less than face value to meet the needs.
Interest rate = 13%
Duration = 10 years, Paid semiannually.
Thus periods = 20
Interest rate = 
Therefore, Present value factor @6.5% for 20 periods = 0.283
Therefore, Value of bond today = $1,000 
0.283 = $283
Answer and explanation:
There are several factors to be considered at the moment of setting the price of a good or service that is going to be offered. Raw materials, production costs per unit, and labor are the most common. However, setting the price based on the competitors seems vague. An organization cannot depend on this matter strictly of another organization since the reasons for getting to the competitors' price is unknown.
Basing the price of a product based on demand and supply could be a good option. It will imply the price level will fluctuate according to market requests. By doing this, companies make sure to keep their expected revenues almost the same regardless of what competitors might be doing.
Answer:
The multiple choices are :
a.$8
b.$20
c.$22
d.$45
The correct option is C.$22
Explanation:
The earnings accruing to the selling group is the selling concession of $22 per $5,000 per bond.
Option A is obviously wrong as there is nothing in the questions that suggest earnings of $8 per bond for the selling group.
Option D is wrong as well because $45 per bond is the spread which is the extra yield to bondholders when compared to investment in government securities
Answer:
d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.
Explanation:
A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.
The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.
Present value of a growing perpetuity is given by
= 
wherein cash flows represent cash flows receivable growing at g% rate till forever
r = required rate of return or cost of capital
g= growth rate of cash flows
Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,
= 
