Answer:
Explanation:
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Answer:
the bond worth today is $651.60
Explanation:
The computation of the amount of bond worth today i.e. present value is to be shown below:
Present value = Amount ÷ (1 + interest rate)^number of years
where,
Amount = $1,000
Interest rate = 5.5%
And, the number of years is 8
Now placing these values to the above formula
So, the worth of the bond today is
= $1,000 ÷ (1 + 0.55)^8
= $651.60
hence, the bond worth today is $651.60
Answer:
Following are the solution to the given question:
Explanation:
For point a:
Calculating the Real rate of interest:
For point b:
Calculating the Real value of loan repayment:
For point C:
In this question, the creditor receives less than what he granted he losses that's why the creditor is the correct answer.
It ensures the marketers consider the whole buying process rather than just the purchase decision. This model implies that customers go through all stages in every purchase they make.
