subject
Business, 12.02.2020 02:27 primmprincess312

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 16 years. Assume you purchase a bond that costs $75. a. What is the exact rate of return you would earn if you held the bond for 16 years until t doubled in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. If you purchased the bond for $75 in 2017 at the then current interest rate of .29 per year, how much would the bond be worth in 2025? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. In 2025, instead of cashing in the bond for its then current value, you decide to hold the bond until it matures in 2033. What annual rate of return will you earn over the last 8 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 16:00
Five times the sum of a number and 27 is greater then or equal to six times the of that number and 26. what is the solution set to this proportion?
Answers: 1
question
Business, 21.06.2019 22:00
The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?
Answers: 1
question
Business, 22.06.2019 10:10
True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity
Answers: 3
question
Business, 22.06.2019 16:20
There are three factors that can affect the shape of the treasury yield curve (r* t , ip t , and mrp t ) and five factors that can affect the shape of the corporate yield curve (r* t , ip t , mrp t , drp t , and lp t ). the yield curve reflects the aggregation of the impacts from these factors. suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the us treasury yield curve can take. check all that apply.a. downward-sloping yield curveb. upward-sloping yield curvec. inverted yield curve
Answers: 1
You know the right answer?
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if...
Questions
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
History, 14.09.2020 02:01
question
History, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 02:01
question
Mathematics, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
question
English, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
question
Mathematics, 14.09.2020 03:01
Questions on the website: 13722363