User Account

All Pages

Indifferent between bond and another bond

Assignment Help Business Management
Reference no: EM131355101

Suppose that John can buy a savings bond for $900 that matures in 3 years and pays John $1,000 with certainty. He is indifferent between this bond and another bond which is riskier but which pays 3% higher interest rate. How much, the riskier bond costs today if it pays $1,000 in 7 years.

  • $641
  • $784
  • $921
  • None of the above

Reference no: EM131355101

Questions Cloud

Create a event response plan for the selected event : Create a 600 word event response plan for the selected event that includes justification for the plan and how you would develop it.
Discuss one or more strategies you can use to prepare : In Chapter 2, the author of your text discusses the connection between assumptions and beliefs and the profound effect our perception of these can have on our ability to become effective teachers. As Jaruszewicz (2013) explains, "Your growth as a ..
Explain intuitively the notion of chance regularity : Explain briefly the connection between chance regularity patterns and probability theory concepts.
How much excess reserves the bank holds : Bank has the following balance sheet. Reserves = $760, Loans = $7,800, T-bills = $560, Deposits = $8,000, and Debt = $800. Reserve requirement is 8%. How much excess reserves the bank holds?
Indifferent between bond and another bond : Suppose that John can buy a savings bond for $900 that matures in 3 years and pays John $1,000 with certainty. He is indifferent between this bond and another bond which is riskier but which pays 3% higher interest rate. How much, the riskier bond..
Evaluate the companys product development strategies : Compare and evaluate the company's product development strategies. What are the advantages and disadvantages of each? Review the scope and performance of Starbucks' international businesses.
Price-earnings ratio for the stock : In year 2016, ABC Corporation earned $68 million from which 35% was retained for investments and the rest was payed as dividends. If during the same year, shares of ABC stock was traded at $38 per share and if 52 million shares of its stock was ou..
What is the final tension : A nickel wire of cross-sectional area 0.0085 em? under a tension of 20 N and a temperature of 20°C is stretched between two rigid supports 1 m apart. If the temperature is reduced to 8°C, what is the final tension?
Explain direction you envision early childhood curriculum : Jaruszewicz (2013) outlined the historical transformation of curriculum and, from this outline, you will notice that the United States continues, like all societies, to refine beliefs about best practices in education and oftentimes these topics g..

Reviews

Write a Review

Business Management Questions & Answers

  Illustrate what limits the influence which trades

As an American citizen explain how much influence do you think is appropriate for trade to have in our governmental processes? In responding to this, please explain illustrate what limits the influence which trades should have on the political pro..

  Typically within the control of the organization

Use both research and your personal experience to develop a SWOT analysis of your college or university (your school's website is almost certainly a rich source of information). Remember that strengths and weakness are internal, and typically within ..

  Briefly summarize the organization primary product

Organization Overview: Briefly summarize the organization's primary product or service. What is the organization's current focus? What are the organization's overarching goals

  Manager main sources of power

What were this manager's main sources of power? Include a discussion of reward power, legitimate power, and expert power as well as other sources of power discussed in the background readings.

  Stakeholder theory of corporate social responsibility

Show how your answer could be justified by either the shareholder or the stakeholder theory of corporate social responsibility.

  Organization treats its human resources

Describe the way the organization treats its human resources. How does this treatment affect the attitudes and behaviors of the workforce?

  Describe organizational theory and design

Explain why might a company consider using an intranet rather than traditional management and executive information systems?

  Would the owner want to set a two-part tariff

A. Verify that the marginal revenue is MR=5-2Q? Given this what rental rate would be set for his videos? B. Would the owner want to set a two-part tariff? If so, what would this be? Explain fully.

  What is your experience identifying the dynamism of people

What is your experience identifying the dynamism of people in your current workplace or in a place where you have worked in the past?

  Write a list of the implications of intangibility for firm

Discuss the differences between services and goods.- Assume that you are a manager of a bank branch. Write a list of the implications of intangibility for your firm.

  Primary advantages of diversity in the workforce

What are the primary advantages of diversity in the workforce? Be specific with a summary of each one. Explain the three (3) main reasons for conducting performance appraisals. What is the key difference between BARS and the Graphic Rating Scale?

  Global experience learning curve

What stage in the global experience learning curve is the company likely entering and why? Identify the activities the company should undertake at this stage?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd