Suppose you buy an inflation-indexed bond that will adjust with inflation and thus pay you $2,500 in real (inflation-adjusted) terms each year for the next five years, plus your real principal of $100,000 at the end of the fifth year. The nominal interest rate is 4 percent and the expected inflation rate is 1 percent. What is the present value of the bond? Show your work.
What will be an ideal response?
This is a present-value problem in which you have all real payments. You just need to deflate by a real discount factor, which is 1 + r = (1 + i) / (1 + ?) = 1.04/1.01. Also, F = $2,500 and V = $100,000. Then use the present-value formula
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Voice recognition systems have created new issues for the workplace, including what?
A) The expectation that employees will not be late as they have access to directions B) The creation of distraction and annoyance for others C) The expectation that dictated information will be accurate when transferred to text D) The expectation that receivers will be able to respond immediately to any inquiry E) The assumption that everyone else has access to the same technology
Which of the following characterizes the current business environment as compared to that at the time the National Labor Relations Act was passed?
A. Clear differences exist between "manual" and "managerial" labor. B. American domination of world markets. C. More mass manufacturing production systems. D. Greater emphasis on the importance and need for knowledgeable workers.
A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in. The company sold the whole lot to a supermarket chain for $14,000 on account
Which of the following entries correctly records the sale? A) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,800 Merchandise Inventory 7,800 B) Merchandise Inventory 14,000 Cost of Goods Sold 14,000 C) Cost of Goods Sold 14,000 Sales Revenue 14,000 D) Accounts Receivable 14,000 Sales Revenue 14,000 Cost of Goods Sold 7,000 Merchandise Inventory 7,000