A bond with a $1,000 face value and a 10 percent annual coupon rate matures in 15 years
a. Determine the value of the bond to a friend of yours with a required rate of return of 13%.
b. A zero coupon bond with similar risk is selling for $180.
The bond has a face value of $1,000 and matures in
15 years. Your friend asks you which bond she should invest in, the zero coupon bond or the bond in part (a).
Which bond do you recommend, and why? Assume the market price of the bond in part (a) is $820.
a. Value of Bond = $100 (PVIFA13%,
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A. cost-savings B. cost-focus C. value-focused D. differentiation E. focused-differentiation
Which of the following is a function of the marketing department of an insurance company?
A) to settle claims after a loss has been reported B) to determine the cost of products the insurer sells C) to make final underwriting decisions D) to identify production goals
Which of the following is NOT a required disclosure under the Consumer Leasing Act:
a. number, amount, and period of the payments and the payment total b. express warranties offered by the leasing party or the manufacturer of the leased property c. identification of the party responsible for maintaining the leased property d. the number of leases both parties are involved in e. all of the other specific choices are required
What is the reason why Polaroid went bankrupt?
A. It failed to have innovative technology and a captive customer base. B. One-hour film processing and digital cameras stole its market share. C. People who want instant access to their pictures also want a third party involved. D. All of the above.