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 39 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
Thanks for the timely response, appreciate it

Alyson.hiatt@yahoo.com

  • Member
  • Posts: 354
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Every flu season is different, and even healthy people can get extremely sick from the flu, as well as spread it to others. The flu season can begin as early as October and last as late as May. Every person over six months of age should get an annual flu vaccine. The vaccine cannot cause you to get influenza, but in some seasons, may not be completely able to prevent you from acquiring influenza due to changes in causative viruses. The viruses in the flu shot are killed—there is no way they can give you the flu. Minor side effects include soreness, redness, or swelling where the shot was given. It is possible to develop a slight fever, and body aches, but these are simply signs that the body is responding to the vaccine and making itself ready to fight off the influenza virus should you come in contact with it.

Defying thousands of years of conventional wisdom, scientists are reporting that it is possible for Defying thousands of years of conventional wisdom, scientists are reporting that it is possible for
Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough Uranus revolves around the Sun once every 84 Earth years. Its average distance from the Sun is rough
Checklist of Developmental Skills: Birth to 5 years Cont. Checklist of Developmental Skills: Birth to 5 years Cont.
Stepwise approach for managing asthma in adults and patients 12 years and older. Stepwise approach for managing asthma in adults and patients 12 years and older.
People who are color-blind see colors differently. (a) Those with normal vision see the red leaves. People who are color-blind see colors differently. (a) Those with normal vision see the red leaves.
Simple and Compound Leaves Simple and Compound Leaves
Video: Cardiac Cycle (Part 3 of 4)

For a complete list of videos, visit our video library