Author Question: Your grandfather has left you 150,000 in a trust fund that you cannot have for another seven years. ... (Read 102 times)

Marty · **on:** Jul 10, 2018

Your grandfather has left you 150,000 in a trust fund that you cannot have for another seven years. You have decided that you really need this money now to pay for your college expenses.

Your attorney offers you 80,000 for an assignment of the proceeds of the trust. If you can get a student loan at 10, should you accept your attorney's offer?
A) No, because the 150,000 is worth more than 80,000 today.
B) No, because the 150,000 is worth less than 80,000 today.
C) Yes, because the 150,000 is worth more than 80,000 today.
D) Yes, because the 150,000 is worth less than 80,000 today.

Question 2

Almost all corporate and government bonds pay coupons on an annual basis.

Indicate whether the statement is true or false.

jointhecircus · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

D

Answer to Question 2

Answer: FALSE
Explanation: Almost all corporate and government bonds pay coupons on a SEMIANNUAL basis.