For the statements below indicate if it is true or false. If the statement is false, rewrite so that it is a true statement.   When companies accumulate too much debt, they usually engage in secondary offerings to acquire money for paying the debt.   TRUE/False :

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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For the statements below indicate if it is true or false. If the statement is false, rewrite so that it is a true statement.

 

When companies accumulate too much debt, they usually engage in secondary offerings to acquire money for paying the debt.  

TRUE/False :

 

2. Assuming free markets, purchasing power parity refers to a situation in which the real purchasing power of a currency is the same in domestic and international trade.

 

TRUE/False :

 

3. Treasury bill with a par value of $5000 sold at $4,750. After six month the discount of this treasury bill is 8.6% . Show your answer.

 

              TRUE/False :

 

4. The present value of a bond is the rate of interest times the expected annual income flow

 

TRUE/False

 

5.The discount rate is the interest rate that one bank charges on a loan to another bank

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