Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discount from the face value. The bond pays 3 percent annual interest, and Chelsea will receive eight semiannual payments. When the bond is redeemed at maturity, the total return (profit) will be $(BLANK). The total return on investment will be (BLANK) %. (Round return on investment percentage to one decimal place.)

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.

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?