Author Question: ________ is the name given to the processes surrounding recognition of the principal-agent problem ... (Read 31 times)

meagbuch · **on:** Jul 10, 2018

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

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