Answer:
a) actual dollar = $60
b) Constant dollar of the 15th payment = $38.710
Explanation:
Facts from the question:
The Face value of the bond = $1,000
Nominal Interest rate = 12% and it compounded annually
General inflation rate = 6%
The question: Determine the 15th interest payment on the bond.
Step 1: The coupon for the amount of semi annual payment is as follows:
Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond
= (0.12/2) x 1000
= $60 -= Actual dollar amount
Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.
To calculate this=
Constant dollar amount of the 15th interest payment
= Actual dollar amount (above) / (1 + inflation rate)∧n
where n= the number of years = 7.5 years
= $60 / (1 + 0.06) ∧7.5
= $60/1.55
= $38.710
This means the constant dollar amount on that 15th payment = $38.710
The answer to the question above is "heuristic" which is the rule of thumb used by Gregory in decision making. The heuristic is a simple rule of individual's mental processes through the development and learning. Gregory considers employees' attitude, knowledge, and hard work for the basis of his decision making. These are the developments and learnings of the employee which are the heuristic aspects<span>.</span>
Answer:
D : project's rate of return is less than the required rate of return.
Explanation:
Net present value (NPV) is a projects evaluation technique that analyzes the present values of predicted future revenues and expenses. In other words, NPV is the current value of future inflows minus costs. In calculating the NPV, future values are discounted with an appropriate discount rate to give the present value.
The NPV can be a positive, zero or negative. Projects with positive NPV are preferred because they are considered profitable. A negative NPV signals that the present value of the expected inflows is lower than the current value of the projected cost at the required discount rate. If the discount rate is maintained, the project is a loss-making venture.
The use of a very high discount rate may give any projects a negative NPV.
Answer: The percentage of respondents said that the gas prices are“Not at all annoying” are 12.57%
Explanation: There are 1018 respondents out of which 128 respondents said that the gas prices are “Not at all annoying”
Where, Number of respondents “Not at all annoying” = 128
Total Number of respondents = 1018
Percentage of the respondents = 128 ÷ 1018 * 100
Percentage of the respondents = 0.1257367 *100
Therefore, the percentage of respondents who said is not annoying is 12.57%.