<span>The "principal-agent problem" is when one person can make a decision on behalf of someone else that impacts the "principal". The agent works to favor the interests of the principal and receives incentives for doing so in return. The agent can get into a conflict of interest or make morally wrong decisions in favor of the principal they are helping. </span>
Answer:
$7,081.25
Explanation:
Face value = 5000
Coupon = 15% paid annually. Semi annual payment = 750/2 = 375
Time to maturity = 18 years
Interest rate = 10% compounded semi-annually
P = 375(P|A, 5%, 36) + 5000(P|F, 5%, 36)
P = 375(16.58131488) + 5000(0.17265193)
P = 6217.99308 + 863.25965
P = 7081.25273
P = $7,081.25
So, the present worth of one bond today is $7,081.25
As distances between buyers and sellers increase, problems related to operations performance increase.
The primary results of this increase in distance and geographic complexity are:-
- Potential for delays and disruptions
A seller is a person or entity that sells products, services, or financial assets. Shorting means borrowing security you don't own, selling it, and buying it back at a lower price. An option seller is called a "writer" who collects a premium from the buyer.
A seller's market is the opposite of a buyer's market, and excess inventory for interested potential buyers means that the buyer has the power to set terms and prices.
Learn more about sellers here:brainly.com/question/906651
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Answer:
The annual amortization expense for 2019 will be $35000.
Explanation:
The amortization expense for the patent calculated based on the useful life of patent. The purchase of value of $235000 plus $10000 gives the total value of $245000 while use the patent of 7 years.
The formula for amortization expense = (Cost of patent - Residual value ) / Useful life of patent)
amortization expense = ($245000-0)/7 = $35000
The legal life would not count due patent in business use for limited life compare to legal life of patent.
Answer:
present value = $848.29
so correct option is c) $848
Explanation:
given data
bond sold = $100 million
time = 6 year
future value = $1,000 par value
original maturity = 20 years
years to maturity left = 14 years
annual coupon rate = 11.5%
require return = 14%
to find out
what price would you pay today for a James bond
solution
we get here first interest amount that is
interest = future value × annual coupon rate × 0.5
interest = 1000 × 11.5% × 0.5
interest = $57.50
and rate =
rate = 7%
now we find present value by
PV(Rate,nper, pmt, FV)
PV ( 7%, 28, 57.50,1000)
present value = $848.29
so correct option is c) $848