Investment

1.      A $10,000 bond that matures in 20 years with interest at 8% per year payable quarterly was issued 4 years ago. If the bond is purchased now for $10,000 and held to maturity, what will be the effective rate of return per quarter to the purchaser? (a) 2% (b) 2.02% (c) 4% (d) 8%

2.      A $SO,OOO corporate bond due in 20 years with an interest rate of 10% per year, payable quarterly, is for sale for $SO,OOO. If an investor purchases the bond and holds it to maturity, the rate of return wiII (a) Nominal 10% per year, compounded quarterly (b) 2.S% per quarter (c) Both (a) and (b) are correct (d) Effective 10% per year

Don't use plagiarized sources. Get Your Custom Essay on
Investment
Just from $13/Page
Order Essay

1.      If alternative A has a rate of return of 10% and alternative B has a rate of return of 18%, what is known about the rate of return on the increment between A and B if the investment required in B is (a) larger than that required for A and (b) smaller than that required for A?

2.      What is the overall rate of return on a $100,000 investment that returns 20% on the first $30,000 and 14% on the remaining $70,000?

 

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.