Remember
Register
AnswerMenu
Questions
Hot!
Unanswered
Categories
Ask a Question
About Us
All categories
Art
(184)
Business
(364)
Accounting
(0)
Economics
(362)
Macroeconomics
(0)
Microeconomics
(0)
Finance
(0)
Marketing
(1)
Management
(1)
Computer Science
(771)
English
(3)
Foreign Language
(1)
Geography
(623)
Health Sciences
(1,322)
Mathematics
(113)
Music
(460)
Physics
(258)
Political Science
(560)
Psychology
(746)
Science
(6,527)
Social Studies
(246)
Other
(14)
The present value of a $1,000 bond is always equal to
0
votes
$1,000 divided by one plus the market interest rate, $1,000/(1+R).
$1,000 plus the future interest payment.
$1,000 divided by (1+ coupon rate).
$1,000.00
asked
Jun 2, 2013
in
Economics
by
anonymous
Tweet
Please
log in
or
register
to add a comment.
Please
log in
or
register
to answer this question.
1 Answer
0
votes
$1,000 divided by one plus the market interest rate, $1,000/(1+R).
answered
Jun 3, 2013
by
Xyz
~Expert~
(
3,650
points)
Related questions
0
votes
1
answer
18
views
18
views
If you purchase a bond with a $1,000 face value and 0% coupon rate for $952.38, the effective interest rate is ______.
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
39
views
39
views
Assume a tread mill will cost $1,200 and, over the next 5 years, yield services valued at $1,000 annually. The treadmill will cost $300 annually for power and maintenance. At the end of the 5 years, the treadmill can be sold for $75. If the current interest rate on savings that the consumer will use is 4%, what is the net present value of the treadmill?
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
29
views
29
views
A computer software start-up company is considering investing $2 million now and $2 million next year to launch. Then in the 3rd through the 10th years, they expect to earn a profit of $500,000 each year. What is the present value of the $4 million investment given a risk adjusted interest rate of 5%?
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
20
views
20
views
The present discounted value of a capital investment is equal to
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
202
views
202
views
A firm has developed incentive pay to encourage more effort from its workers. When a Worker A puts forth more effort, she gives up leisure time valued at $10,000. The firm pays a bonus of zero for revenue less than $40,000 and a $20,000 bonus for revenue more than $40,000. Assuming that Worker A has some influence over the revenue outcome, there is a 75% chance that revenue will be more than $40,000 but a 25% chance that revenue will be less than $40,000. What is the expected value of the bonus less the value of extra effort for Worker A?
asked
Jun 2, 2013
in
Economics
by
anonymous
...