Answer:
Value of the bond = $862.013
Explanation:
The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of the bond can be worked out as follows:
Step 1
<em>Calculate the PV of Interest payment
</em>
Present value of the interest payment
PV = Interest payment × (1- (1+r)^(-n))/r
Interest payment = $40
PV = 40 × (1 - (1.05)^(-12×2)/0.05)
= 40 × 13.7986
= 551.945
Step 2
<em>PV of redemption Value
</em>
PV of RV = RV × (1+r)^(-n)
= 1000 × (1.05)^(-12×2)
= 310.067
Step 3
<em>Calculate Value of the bond </em>
= 551.94567 + 310.067
=862.01
Value of the bond = $862.013
Answer:
Decision : It is not good invest as it offers at $925 whereas your bank deposit cost $893.16 for same return.
Explanation:
Detailed calculations are carried out in the attachment below.
Answer:
D : Cultural relativism
Explanation:
Cultural relativism is an idea that an action should be viewed in the context of the socio-cultural environment in question. If child labor is permitted in Country X, it implies that rival companies and competitors who use child labor will experience cheaper production cost and unless the multinational company does same, it may face the need to pul out of the market.
Answer:
Letter C is correct. <u>Person by situation interaction.</u>
<u>Explanation:</u>
This is a cognitive process that occurs through the individual perspective of each human being. This implies that our behavior is not totally conditioned by an automatic response predetermined by any variables, but what determines our way of being and acting is the set of learnings, memories, thoughts and perceptions about certain situations as well. as the process of social interaction, which determines how the experiences and actions lived by an individual in society will actively influence their tastes, actions and perceptions about society in general.
