You pay $5600 for a municipal bond. When it matures after 15 years, you receive $11,000 The total return is ___%.
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- You pay $5600 for a municipal bond. When it matures after 15 years, you receive $11,000
The total return is ___%.
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- $52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested in the account, how much will the bond be worth in 5 years? Round your answer to the nearest dollar.The city is issuing bonds for a building project . You obtain 7200 bond that pays 7% interest annually that matures in 7 years. How much interest will you earn?On a loan of $1400, interest at 9% effective must be paid at the end of each year. The borrower also deposits $X at the beginning of each year into a sinking fund earning 4.7% effective. At the end of 10 years the sinking fund is exactly sufficient to pay off the loan. Calculate X. A. $ 1617.11 B. $ 1078.07 C. $ 1347.59 D. $ 1724.92 E. $ 1232.09
- A government bond pays $100 in interest each year for Three years and also returns the principal of $1,000 in the third year. How much is it worth in terms of today’s money if the rate of interest is 8 percent? If the rate of interest is 12 percent.A municipality needs funding for upcoming infrastructure (water and sewer line) repair or replacement. They issue a series of $1,000, 7% semiannual, 11-year bonds . The bonds are initially sold at a discount for $980. If you buy a bond for $980, plan to sell it immediately following the 16th interest payment, and want to earn 9% compounded semiannually on your money, what must be the selling price? Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places.You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the end of the year. What interest rate are you being charged? a. 5% b. 7% c. 8% d. 9% e. 6%
- Safewell Co obtains a discount loan at a 12 percent interest rate. Safewell borrows $100,000 for one year. What is the effective interest rate?A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: O a. 11300.50 O b. 10000.46 O c. 11372.36 O d. 12000.40 Previous pagnToday is January 1, 2009. The state of lowa has offered your firm a subsidized loan. It will be in the amount of $ 10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the € - denominated NPV of this project? I did not round my intermediate steps, if you did, select the answer closest to yours. Group of answer choices €5,563.23 €2,270.79 €7,223.14 €3,554.29
- Today is January 1, 2009. The state of lowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the €-denominated NPV of this project? I did not round my intermediate steps, if you did, select the answer closest to yours.A company has made an investment in government bonds. The bonds will generate an interest income of OMR 3000 each year for 5 years. The interest rate is 10% compounded annually. Compute present value of the stream of interest income. Select one: a. 11300.50 b. 10000.46 c. 12000.40 d. 11372.363) You are loaned $10, 000 at an effective annual interest rate of i = 7% and agree to pay this back by paying 300% of each year' interest ar the end of each year. When does the outstanding balance first fall below $2,000?
