Which best describes discretionary spending?
the personal satisfaction gained from consumptio...
Business, 08.09.2019 08:10 alex12everett
Which best describes discretionary spending?
the personal satisfaction gained from consumption
buying goods according to what one want or needs
reluctance for taking chances when making investments
weighing the extra costs and benefits of one more unit
Answers: 1
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Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.
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