Answer:
d. treasury and top-grade corporate bonds pay interest two times each year
Explanation:
Treasury bonds represent the best solution for investing, having in mind the <u>low-risk aspect</u> and the fact that they are <u>issued by the government</u>. Treasury and top-grade corporate bonds always pay <u>semiannual interests</u>.
<em>Junk bonds</em> should not be even considered in risk-free options, as a junk bond is a bond issued by a struggling company, which may happen not to pay any interest sometimes.
<em>Common stock</em> does not necessarily have to pay quarterly dividends, as some companies pay dividends monthly, or even annually. Also, the risk is still lower in treasury bonds, as common stock becomes questionable in the case of company liquidation. If and when that happens, common stockholders gain rights to company assets only after bondholders and preferred shareholders become paid.
The default risk is present in all bonds, including <em>Yankee bonds</em>, which are issued by foreign companies in the USA.
Answer:
c. Attorney B because this person is a better fit for Marsha's needs.
Explanation:
Attorney B is the better option because he has direct experience in Marsha's area of business and will be more focused on delivering results. Unlike Attorney A that works in a big firm, does not have experience in Marsha's business, and does not respond to her calls.
Despite the slightly higher hourly rate by Attorney B he is the better option because the probability that he will deliver results is high.
Attorney A may be cheaper but due to his inexperience and lack of commitment to the case he stands the chance of loosing the case. Resulting in even higher loss.
Answer:
$34,116
Explanation:
To determine how much Pete would should save, we have to determine the present value of $13,000
Present value is the sum of discounted cash flows
present value can be calculated with a financial calculator
Cash flow each year from year 1 to 3 = $13,000
I = 7%
Present value = $34,116
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer: 1 year older then u were
Explanation: