Calculate the price of annual coupon bond
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Calculate the price of annual coupon bond
Two finance questions
As the risk manager for the above chain of restaurants, you have been asked to help settle a liability claim by a customer who was eating in the restaurant. You have assumed a 5% interest rate and have offered the following options to the plaintiff. Explain to your board of directors which of these is best for the restaurant. Calculate the
______________Offering the plaintiff a lump sum today of $200,000
______________Offering the plaintiff a perpetuity of $19,000 per year
______________Offering the plaintiff an annuity of $15,000 per year for 12 years
______________Offer the employee $50,000 today and monthly payments of $1,000 for 20 years.
______________Offer the plaintiff a 15-year annuity of monthly payments of $1,500
2.Calculate the price of a 15-year 4 percent annual coupon bond. Assume the market is yielding 5 percent on similarly risky instrument. Please show your work and explain why this is a premium or a discount bond.
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The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
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The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
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More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
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Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
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Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
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There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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