Primo, inc. issued $50,000, 5-year, 7% bonds that pay interest annually on january 1 when the going market interest rate was 6%. the issue (sale) price of the bonds equals the present value of and 5 periods. a) $50,000 plus the present value of an annuity of $3,500, both discounted at 7% b) $50,000 plus the present value of an annuity of $3,000, both discounted at 7% c) $50,000 plus the present value of an annuity of $3,500, both discounted at 6% d) $53,500 discounted at 7%.

c) $50,000 plus the present value of an annuity of $3,500, both discounted at 6%

Explanation:

In pricing a coupon bond, you find the present value of the coupon payments which are in form of an annuity , and add to the present value of the Par value or Face value of the bond.

Formula for finding Price of bond =

Coupon PMT = 7%*50,000 = 3,500

Interest rate; r = 6%

Next, plug in the numbers;

Therefore, as you can see when the numbers are plugged in the formula, the  50,000 is discounted at 6%, so is the PMT of 3,500

answer; (15,000)workers each

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know