________ is the name given to the processes surrounding ...

[meagbuch]

________ is the name given to the processes surrounding recognition of the principal-agent problem and ways to align agents with the interests of the principals.
 
  A) Principal theory
  B) Interested party theory
  C) Agency theory
  D) Compensation process theory

Question 2

Yantai Food, Inc. has issued a bond with par value of 1,000, a coupon rate of 9 percent that is paid semi-annually, and that matures in 10 years. What is the value of the bond if the required rate of return is 12 percent?
 
  What will be an ideal response?

[Sassygurl126]

Answer to Question 1

Answer: C

Answer to Question 2

Coupon payment = 1,000  0.09 = 90
Semi-annual coupon payment = 90/2 =45
Using financial calculator: PMT= 45, I=6, N=20, FV=1000, CPT PV = 827.95

[meagbuch]

TYSM

[steff9894]

Excellent