Business, 08.11.2019 02:31, memorybuxton

You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 percent. one is ordinary annuity, one is an annuity due, and the third investment is a perpetuity. which one of the following statements is correct given these three investment options? a) to be the perpetuity, the payments must occur on the first day of each monthly periodb) the ordinary annuity would be more valuable than the annuity due if both had a life of 10 yearsc) the present value of the perpetuity has to be higher than the present value of either the ordinary annuity or the annuity dued) the future value of all three investments must be equale) the present value of all three investments must be equal

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:00, brodybb5515

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Answers: 1

continue

Business, 22.06.2019 12:10, felisha1234

Bonds often pay a coupon twice a year. for the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash flow decreases by half. using the values of cash flows and number of periods, the valuation model is adjusted accordingly. assume that a $1,000,000 par value, semiannual coupon us treasury note with three years to maturity has a coupon rate of 3%. the yield to maturity (ytm) of the bond is 7.70%. using this information and ignoring the other costs involved, calculate the value of the treasury note:

Answers: 1

continue

Business, 22.06.2019 14:00, mrfishyyyy

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.

Answers: 2

continue

Business, 22.06.2019 14:20, dieguezisabel

In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5

Answers: 1

continue

Do you know the correct answer?

You are comparing three investments, all of which pay $100 a month and have an interest rate of 8 pe...