Mary is in contract negotiations with a publishing house for her new novel. she has two options. she may be paid $100,000 up front, and receive royalties that are expected to total $26,000 at the end of each of the next five years. alternatively, she can receive $200,000 up front and no royalties. which of the following investment rules would indicate that she should take the former deal, given a discount rate of 8%? rule i: the net present value rulerule ii: the payback rule with a payback period of two yearsrule iii: the internal rate of return (irr) rulea) rule ii and iiib) rule i and iic) rule iii onlyd) rule i only

Sarah borrowed $16,500 on may 23 with interest due on september 3. if the interest rate is 9%, find the interest on the loan using exact interest and ordinary interest.

Mai and chuck have been divorced since 2012. they have three boys, ages 6, 8, and 10. all of the boys live with mai and she receives child support from chuck. mai and chuck both work and the boys need child care before and after school. te boys attend the fun house day care center and mai paid them $2,000 and chuck paid them $3,000. mai's agi is $18,000 and chuck's is $29,000. mai will claim two of the boys as dependents. she signed form 8332 which allows chuck to claim one of the boys. who can take the child and dependent care credit?

Risk is the risk of a decline in a bond's value due to an increase in interest rates. this risk is higher on bonds that have long maturities than on bonds that will mature in the near future. risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. this risk is obviously high on callable bonds. it is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues. which type of risk is more relevant to an investor depends on the investor's , which is the period of time an investor plans to hold a particular investment. longer maturity bonds have high risk but low risk, while higher coupon bonds have a higher level of risk and a lower level of risk. to account for the effects related to both a bond's maturity and coupon, many analysts focus on a measure called , which is the weighted average of the time it takes to receive each of the bond's cash flows. conceptual question: which of the following bonds would have the largest duration? a)10year-zero coupon bonds b)10year-7% annual coupon bonds c)10year-3% annual coupon bonds d)5year-3% annual coupon bonds e)3year-7% annual coupon bonds