Inflation-indexed Treasury bond with a 5% coupon rate is issued at $1,000. If inflation in the year after issuance is 6%,
A)
the new coupon rate will be 11%.
B)
the new redemption value is $1,060.
C)
the new redemption value is $1,100.
D)
the bond is redeemed and a new bond with a 6% coupon is issued.
B
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A. reward B. sales skill level C. satisfaction D. motivation E. sales aptitude
Consider the TVM equation: A decrease in the time period will increase the future value, other things remaining equal
Indicate whether the statement is true or false.
_____ wills are written entirely in longhand by the testator.?
A) ?Holographic B) ?Nuncupative C) ?Codicil D) ?Oral
An investor is considering the two investments shown above. Which of the following statements about these investments is true?
Time: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount Rate Investment A: -$1.5 million $300,000 $300,000 $300,000 $500,000 $500,000 8% Investment B: -$1.3 million $500,000 $400,000 $300,000 $200,000 $100,000 7% A) The investor should take investment A since it has a greater net present value (NPV). B) The investor should take investment A since it has a greater internal rate of return (IRR). C) The investor should take investment B since it has a greater net present value (NPV). D) Neither investment should be taken since they both have a negative net present value (NPV).