This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Your aunt dies and leaves you 1M in her will, but it must stay in trust for 10 years. You want to ... (Read 24 times)

karen

  • Hero Member
  • *****
  • Posts: 537
on: Jul 10, 2018
Your aunt dies and leaves you 1M in her will, but it must stay in trust for 10 years. You want to spend it now, so you go to the Bank to borrow against the bequest. You offer the 1M to repay interest and principal at the end of ten years.
 
  The Bank wants to earn 5 on its loan, so how much will it offer you today?
  A) 613,913.25
  B) 617,283.95
  C) 675,564.17
  D) 558,394.78
  E) 1,000,000.00

Question 2

Espresso Petroleum Inc. has a contractual option to buy back, prior to maturity, bonds the firm issued five years ago. This is an example of what type of bond?
 
  A) Putable bond
  B) Callable bond
  C) Convertible bond
  D) Junior bond


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

xoxo123

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: B


karen

  • Member
  • Posts: 537
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

The Dingo was the first placental mammal introduced to Australia, around 4000 years ago The Dingo was the first placental mammal introduced to Australia, around 4000 years ago
A mother dies, a father loses his leg—such calamities shattered poor urban families. Orphaned street A mother dies, a father loses his leg—such calamities shattered poor urban families. Orphaned street
Many physicians use cell phones to stay in touch with their offices. Many physicians use cell phones to stay in touch with their offices.
During their elderly years, men and women continue to exhibit aspects of the gender roles that they ... During their elderly years, men and women continue to exhibit aspects of the gender roles that they ...
Mount Pinatubo caused ~1˚C cooling for up to 5 years Mount Pinatubo caused ~1˚C cooling for up to 5 years
Video: Mechanisms of capillary exchange

For a complete list of videos, visit our video library