subject
Business, 18.02.2020 05:33 Mikey3477

Problem 6-13 Pricing Consol Bonds (LO2) Perpetual Life Corp. has issued consol bonds with coupon payments of $60. (Consols pay interest forever and never mature. They are perpetuities.). If the required rate of return on these bonds at the time they were issued was 6%, at what price were they sold to the public?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 21:30
Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?
Answers: 1
question
Business, 22.06.2019 07:00
Imagine you own an established startup with growing profits. you are looking for funding to greatly expand company operations. what method of financing would be best for you?
Answers: 2
question
Business, 22.06.2019 08:10
What are the period and vertical shift of the cosecant function below? period: ; vertical shift: 1 unit up period: ; vertical shift: 2 units up period: ; vertical shift: 1 unit up period: ; vertical shift: 2 units up?
Answers: 3
question
Business, 22.06.2019 17:30
Four students are at an extracurricular activity fair at their high school and are trying to decide which clubs to join. some information about the students is listed in this chart: which describes which ctso each student should join?
Answers: 1
You know the right answer?
Problem 6-13 Pricing Consol Bonds (LO2) Perpetual Life Corp. has issued consol bonds with coupon pay...
Questions
question
Mathematics, 14.04.2020 19:42
question
Mathematics, 14.04.2020 19:43
Questions on the website: 13722367