2. If the interest rate is 4% and you are offered a bond that will pay...

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2. If the interest rate is 4% and you are offered a bond that will pay you $1,000 in two years, but no interest between now and then, what would you be willing to pay for this bond today? 3. What are the different ways in which businesses can acquire financial capital? 4. Why are colleges filled with young people rather than middle-aged individuals? If inter- est rates rose to over 10%, would this have any impact on the number of people attend- ing college or its composition? 5 What is the difference between physical capital and human capital? 6. What do intellectual property rights protect and why are they important to entrepreneurship? 2. If the interest rate is 4% and you are offered a bond that will pay you $1,000 in two years, but no interest between now and then, what would you be willing to pay for this bond today? 3. What are the different ways in which businesses can acquire financial capital? 4. Why are colleges filled with young people rather than middle-aged individuals? If inter- est rates rose to over 10%, would this have any impact on the number of people attend- ing college or its composition? 5 What is the difference between physical capital and human capital? 6. What do intellectual property rights protect and why are they important to entrepreneurship?

Answer rating: 100% (QA)

2 9 26 09 To find the present value of the bond we solve for PV Present Value in the following equation The NPV of the bond is 90384 or 11115 compared ... View the full answer