Consider a coupon bond that pays $350 every year and repays its principal amount of $5,000 at the end of four years. If the annual rate of discount is 6 percent, what is the present value of the bond?
What will be an ideal response?
Use the equation 
.
With F = $350, i = 0.06, N = 4, and V = $5,000, then P = $5,173.26.
You might also like to view...
Rico's Taqueria had cash inflows from operating activities of $27,000; cash outflows from investing activities of $22,000, and cash outflows from financing activities of $12,000. Calculate the net increase or decrease in cash.
A. $61,000 increase. B. $34,000 decrease. C. $7,000 decrease. D. $7,000 increase. E. $37,000 increase.
In an automated warehouse, orders are fed directly from the retailer's information system to the wholesaler's, and the items are picked up by mechanical devices and taken to a shipping platform where they are assembled
Indicate whether the statement is true or false
In which of the following situations is the direct organizational method the preferred way to deliver bad news?
A) The news is likely to upset or anger the audience B) The news is irrelevant to health and safety C) The news is difficult to explain and understand D) It is important that the audience sees the news immediately E) The news is unexpected
The supplier relationship process selects the suppliers of services, materials and information, while the order fulfillment process facilitates the timely and efficient flow of these items into the firm
Indicate whether the statement is true or false