Emily is contemplating the purchase of a 20-year bond that pays $50 interest every six months. The face value of the bond is $1,000. She plans to hold the bond for 10 years and sell it. She requires a 12 percent annual return but believes that the market will give only an 8 percent return when she sells the bond 10 years from now. Assuming she is a rational investor, how much should she be willing to pay for the bond today?
A. $1,126.85
B. $885.30
C. $737.50
D. $927.68
E. $856.91
Answer: D
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In Fontainebleau Hotel v. Eden Roc, the Eden Roc Hotel sued the Fontainebleau Hotel when Fontainebleau began erecting a 14-story addition to its premises that Eden Roc claimed blocked air and sunlight from its pool and sunbathing areas. The court determined that
A. the building could be erected if it could be shown to be useful and beneficial even if it may have been erected partly for spite to knowingly harm the plaintiff. B. the building could be erected if it could be shown to be useful and beneficial as long as there was no evidence that it was being erected out of spite to knowingly harm the plaintiff. C. blocking the air and sunlight constituted a nuisance, so the building could be stopped. D. the English law doctrine of "ancient lights" applied only if the building caused a dangerous circumstance to occur but not if the building caused only a nuisance.
A petty cash fund was established with a $400 balance. It currently has cash of $41 and petty cash tickets totaling $359. Which of the following would be included in the entry to replenish the fund?
A) a credit to Petty Cash for $359 B) a debit to Petty Cash for $41 C) a credit to Cash for $41 D) a credit to Cash for $359
Financial accounting
a. is primarily concerned with internal reporting. b. is more concerned with verifiable, historical information than is cost accounting. c. focuses on the parts of the organization rather than the whole. d. is specifically directed at management decision-making needs.
Which element in the retail promotion mix most often emphasizes novelty?
a. public relations b. personal selling c. sales promotion d. advertising