According to the present value of money

Assignment Help Business Economics

Reference no: EM131385918

When he was born, Bob was given a $10,000 30 year bond by his uncle. Ben, Bob’s brother wants to buy the bond for $6,000. Bob is currently 25 years old. US Treasuries are currently paying 6.5%. According to the present value of money should Bob accept Ben’s offer? Write your solution below.

Reference no: EM131385918

Questions Cloud

Blue nile consider based on preceding analysis : What strategic options should Blue Nile consider based on preceding analysis? What goals and actions do you think are most important to ensure the company's ongoing success?

Explain how moral hazard-asymmetric information : Explain how moral hazard, asymmetric information, and adverse selection molded tort law regarding compensation for injuries to slaves, livestock, and free passengers caused by, or occurring on, common carriers (steamboats and railroads). Explain why ..

Computing the ability to diversify : The larger a bank the better is its ability to diversify. As a diversified portfolio of assets is a public good, regulators should not limit the size of banks, despite the significant negative externalities failures of large banks tend to impose o..

Summarize the chosen instance of failed communication : Identify an instance in which an individual or group presented a sound and creative solution to a problem, but failed to persuade their target audience to accept the proposed solution. You can select something you were involved in (like a school b..

According to the present value of money : When he was born, Bob was given a $10,000 30 year bond by his uncle. Ben, Bob’s brother wants to buy the bond for $6,000. Bob is currently 25 years old. US Treasuries are currently paying 6.5%. According to the present value of money should Bob accep..

What would the resulting concentration ratio be : According to the Herfindahl-Hirschmann sum of the squares, in an industry with the top four firms with a market share of 25, 30, 10, and 15 respectively. What would the resulting concentration ratio be? Is this considered to be a competitive industry..

Tasks in a separate paragraph and in the order : You have four tasks for your initial post. In order to present an organized post, address each one of these tasks in a separate paragraph and in the following order. Your first task is to articulate the economic system (or combination of character..

Will the effects on the level of equilibrium real GDP : Assume there is an increase in autonomous investments of $100 billion. Will the effects on the level of equilibrium real GDP be greater with a relatively high or relatively low marginal propensity to consume? Explain.

Knowledge of organization theory and organization behavior : How can a knowledge of organization theory and organization behavior improve the practice of leading and managing organization in the 21st century?

User Account

All Pages