Why is it important to match the frequency of the interest

Assignment Help Finance Basics
Reference no: EM13844234

1.) Why is it important to match the frequency of the interest rate to the frequency of the cash flows?

2.) Why aren't the payments for a 15 year mortgage twice the payments for a 30 year mortgage at the same rate?

3.)  What do we mean when we refer the "opportunity cost" of capital?

 

 

Reference no: EM13844234

Questions Cloud

Describe who the stakeholders are in the organization : PR practitioners have a responsibility in a crisis to give the rest of the management team insight and information. PR practitioners should also consider nimbus publics. These are publics that were not designated recipients of messages, activities, o..
The interest rate on the mortgage : You plan to buy your dream home in 5 years. At that time, you would like to be able to afford a $250,000 home and put 20% down, and take out a 30 year mortgage for the rest. You can invest at 5% per annum compounded monthly. Assume this will also be ..
Is the organization conducive to being project-based : Discuss the organizational culture of a place you work, or have worked. Would you characterize the culture as being strong or weak? Please use examples to illustrate why it is considered strong or weak. Is the organization conducive to being project-..
Use to ensure that advertising and production departments : You have just been hired as a brand manager of toothpaste for a large consumer products company. Your job mainly involves encouraging the advertising and production groups to promote and manufacture your product more effectively. Describe the sources..
Why is it important to match the frequency of the interest : 1.) Why is it important to match the frequency of the interest rate to the frequency of the cash flows? 2.) Why aren't the payments for a 15 year mortgage twice the payments for a 30 year mortgage at the same rate?
Amount of information flowing through corporate grapevine : In your opinion, has the introduction of email and other information technologies increased or decreased the amount of information flowing through the corporate grapevine? Explain your answer.
The principal amount of the bond is never : Cape Fear Energy raised (borrowed) $100 million by issuing an innovative new bond that is being referred to as a "Triennial" bond. The Triennial bonds, which have a par value of $1000, make an interest payment of $120 once every three years in perpet..
Insights on conflict in organizations : Provide 2 insights on conflict in organizations. Is conflict in organizations good or bad? Can conflict be avoided? Should all potential issues that can lead to increased conflict be addressed immediately? Expand your answers to show your understandi..
Effective in aligning employee behavior and performance : If you were the CEO of a company, what would you do to your compensation and benefits plan to make it effective in aligning employee behavior and performance with the needs of the enterprise?

Reviews

Write a Review

Finance Basics Questions & Answers

  How the market value of the shares has been affected

Assuming that there is a perfect market in St James' Ltd's shares, and that the market uses a dividend valuation model, show how the market value of the shares has been affected by the Board's decision.

  Listed here are some items found in the financial

listed here are some items found in the financial statements of ellyn toth inc. indicate in which financial statements

  What are the financial implications if it does not

Define weighted average cost of capital and explain why a company must earn at least its weighted average cost of capital on new investments. what are the financial implications if it does not?

  Evaluation of corporate performance

The Final Project will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report ..

  Identify the relationship between human resources

Identify the relationship between human resources and labor management relations and safety outcomes. Consider how efficient production and safe production are related. Also discuss other organizational factors that created a safer workplace at..

  Get a margin call if the stock price falls

Hailey purchase 400 shares of MLP common stock on margin at $25 per share. The initial margin is 60% and the maintenance margin is 40%. You will get a margin call if the stock price falls below

  If the discount rate for this project is 10 percent what is

npvirr. growth enterprises believes its latest project which will cost 50000 to install will generate a perpetual

  A firm that makes 90 of its sales on credit and 10 for cash

1.which of the followingstatements is correct?a.a firm that makes 90 of its sales on credit and 10 for cash is growing

  What is the current price of the old bonds

What is the current price of the old bonds would be for a previously issued bonds in the market place. Do the example based on $1000 bond using semiannual analysis.

  How is a competitor a stakeholder

It is hard to believe a competitor is a stakeholder,isn't the goal of competition to win and perhaps even dominate the market? If so, how can a company have an interest in the on going health of their competitors (except to beat them?) How is a co..

  What is the stock expected price 3 years from today

Investors expect a return R of 9.00%. What is the stock's expected price 3 years from today?

  What is the best estimate of these bonds remaining life

Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd