CHAPTER 3 Valuing Bonds Answers to Problem Sets 1. a. Does not change b. Price falls c. Yield rises. 2. a. If the coupon rate is higher than the yield‚ then investors must be expecting a decline in the capital value of the bond over its remaining life. Thus‚ the bond’s price must be greater than its face value. b. Conversely‚ if the yield is greater than the coupon‚ the price will be below face value and it will rise over the remaining life of the bond. 3.
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Chapter 4 1. If you invest $1000 today at an interest rate of 10% per year‚ how much will you have 20 years from now‚ assuming no withdrawals in the interim? SOLUTION: n PV FV PMT Result 20 2. i 10 1000 ? 0 FV =6‚727.50 a. If you invest $100 every year for the next 20 years‚ starting one year from today and you earn interest of 10% per year‚ how much will you have at the end of the 20 years? b. How much must you invest each year if you want to have
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Chapter 1. Legal forms of business organization A. Sole proprietorship: A business owned by a single person and which has a minimum amount of legal structure. 1. Advantages a. Easily established with few complications b. Minimal organizational costs c. Does not have to share profits or control with others 2. Disadvantages a. Unlimited liability for the owner b. Owner must absorb all losses c. Equity capital limited to the owner’s personal investment d. Business terminates immediately
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Chapter 1 1 Introduction Economics and managerial decision making 2 Economics: The study of the behavior of human beings in producing‚ distributing and consuming material goods and services in a world of scarce resources Management: The science of organizing and allocating a firm’s scarce resources to achieve its desired objectives Managerial economics: The use of economic analysis to make business decisions involving the best use (allocation) of an organization’s scarce
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A) Straight-line Depreciation Computation End of Year Year DC X DR = ADE AD BV 2012 220‚000 25% 55‚000 55‚000 195‚000 2013 220‚000 25% 55‚000 110‚000 140‚000 2014 220‚000 25% 55‚000 165‚000 85‚000 2015 220‚000 25% 55‚000 220‚000 30‚000 ($250‚000 – $30‚000) 1/4 = 25% Please note abbreviations are the same as bellow Double- Declining-Balance Depreciation Computation End of Year Book Value Annual
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Lawrence Kohlberg Lawrence Kohlberg was born in New York on October 25‚ 1927. Kohlberg went to the prestigious Phillips Academy in Massachusetts before enlisting in the Merchant Marines during World War II. When he left the military‚ Kohlberg enrolled in the University of Chicago and a few years later‚ he received his Ph.D. in psychology. He spent several years at Yale as a teacher before returning to the University of Chicago to accept a position on staff. In 1967‚ Kohlberg left Chicago to go to
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Friar Lawrence is a character in William Shakespeare’s Romeo and Juliet that served as a mentor for Romeo and Juliet‚ the two star-crossed lovebirds. He served as a mentor and a friend throughout the entire play‚ and because of it‚ his life was forever changed. In the beginning of the story‚ we meet the friar and can see that he is a happy go lucky guy‚ frollicking through the fields and giving advice to Romeo. However‚ the friar has to deal with quite a bit more than a two lovestruck teens‚ and
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this only Friar Lawrence‚ a man very close to Juliet‚ knew about their romance‚ yet still kept it a secret.. Even though they had no problems‚ their families had long been in a feud with each other‚ and their love was forbidden‚ as well as dangerous. Was keeping this situation a secret really the best decision he made? Their romance was already dangerous‚ and to keep it a secret from four very important figures? To me‚ it seems that this made all the more dangerous. Friar Lawrence was a very noble
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Friar Lawrence Friar Lawrence: Mission Accomplished In William Shakespeare’s romantic tragedy Romeo and Juliet‚ Friar Lawrence plays an important role. The holy man makes what he believes to be the right decision in every action he takes. Romeo and Juliet often come to the Friar for advice on what to do with their life. Although Friar Lawrence may bend the law in some ways‚ he is striving to unite two young lovers‚ and therefore ending their families’ menacing feud. The Prince hopes for this
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Lawrence is the main protagonist in the movie "Lawrence Of Arabia" and the movie simply follows his conquests of Arabia from the Turkish though out his life. Lawrence was a Lieutenant station in Cairo‚ who with his extensive knowledge and schooling of the Arabian Culture and lack of anyone else he was sent to Arabia to become the Ambassador to the leader of a power tribe Ruled by Prince Faisal. While there we see the Lawrence of Arabia is an exceptional leader who leads the Arabian people to independence
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