Knowledge check 01 zeta corporation issues $100,000 of 8% bonds maturing in 10 years on january 1, year 1, when the market rate of interest is 9%. the bonds were issued at a discount, market interest rates drop to 7% by december 31, year 1. the company retires these bonds on december 31, year 1. how much did it cost the company to retire them? multiple choice $106,595 $100,000 o oo $93,496

What other aspects of ecuadorian culture, other than its predominant religion and language, might affect that country’s culture?

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out