Suppose you buy an inflation-indexed bond that will adjust with inflation and thus pay you $1,500 in real (inflation-adjusted) terms in one year. The real interest rate is 3 percent. What is the present value of the bond? (Round off your answer to the nearest dollar and pick the answer closest to the one you calculate.)
A. $1,415
B. $1,456
C. $1,471
D. $1,530
Answer: B
You might also like to view...
Rising customer expectations, evolving employee goals and ambitions, and tighter government legislation and pressure are driving companies to ________
A) operate leaner manufacturing facilities B) manage shorter supply chains C) operate flatter organizations D) practice a higher level of corporate social responsibility E) vertically integrate
All people’s lives at home affect their mood, but when we go to work we must change at least our outward appearance. Managing these feelings is known as ______.
a. surface acting b. emotional labor c. deep acting d. feeling suppression
A company newsletter is an example of ________
A) media relations B) sponsorship C) corporate identity D) internal PR E) publicity
Consider the following two activities: (1 ) performing warranty work, cost: $60,000. The warranty cost of the most efficient competitor is $10,000. (2 ) Purchasing components, cost: $100,000 (5,000 purchase orders). A study reveals that the most efficient level would use 2,500 purchase orders and entail a cost of $55,000. What is the nonvalue-added cost?
A) $55,000 B) $60,000 C) $45,000 D) $100,000