What is the cash flow of a seven-year bond that pays no coupon interest and has a par value of $10,000?
What will be an ideal response?
There is no periodic cash flow as found in the previous problem. Thus, the only cash flow will be the principal payment of $10,000 paid by the issuer (and received by the bond purchaser) at the end of seven years. This type of cash flow with no periodic payment resembles a zero-coupon bond. For a zero-coupon bond, the holder realizes interest at maturity after buying the bond substantially below its principal value. The exact amount of interest received at maturity date by the holder is the difference between the principal value and the price initially paid.
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Which of the following is the most likely reason for the decline in fortunes of American newspapers, and their inability to exploit their competitive advantage?
A. A poorer standard for news-gathering. B. Relying too heavily on advertising, rather than customer subscriptions, for revenue. C. Decline in newspaper readership over the last 70 years. D. Preference of customers for getting news in a nonverbal format. E. An increase in salaries and material costs within the industry.
________ is any type of leisure activity that utilizes wireless telecommunication networks, interacts with service providers, and incurs a cost upon usage
Fill in the blank(s) with correct word
Optical light pulses can be stored indirectly, such as ____
a. on the surface of a DVD b. on the surface of a magnetic disk c. in the blocks of flash memory d. the groves of a record
A portfolio that has an expected outcome of $115 is formed by
You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. A. investing $100 in the risky asset. B. investing $80 in the risky asset and $20 in the risk-free asset. C. borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset. D. investing $43 in the risky asset and $57 in the riskless asset. E. Such a portfolio cannot be formed.