This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The rate of return earned on an investment of 50,000 today that guarantees an annuity of 10,489 for ... (Read 209 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
on: Jul 10, 2018
The rate of return earned on an investment of 50,000 today that guarantees an annuity of 10,489 for six years in approximately:
 
  A) 5 percent
  B) 7 percent
  C) 30 percent
  D) 10 percent
  E) 12 percent

Question 2

Endicott Enterprises Inc. has issued 30-year semiannual coupon bonds with a face value of 1,000. If the annual coupon rate is 14 and the current yield to maturity is 8, what is the firm's current price per bond?
 
  A) 578.82
  B) 579.84
  C) 1,675.47
  D) 1,678.70


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bdobbins

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

Answer: D
Explanation: D)
Bond Price = PMT  +
= 70  + = 1,678.70.
MODE = END, P/Y = 2, C/Y = 2
INPUT 60 8 ? -70 -1,000
KEY N I/Y PV PMT FV
CPT 1,678.70


CQXA

  • Hero Member
  • *****
  • Posts: 546
Reply #2 on: Jul 10, 2018
TY


bdobbins

  • Sr. Member
  • ****
  • Posts: 326
Reply #3 on: Jul 10, 2018
Happy to Help


« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

For this bimolecular reaction, the rate constant k is second order For this bimolecular reaction, the rate constant k is second order
Spring force, crankcase pressure, and intake manifold vacuum work together to regulate the flow rate ... Spring force, crankcase pressure, and intake manifold vacuum work together to regulate the flow rate ...
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Desired Fertility versus Total Fertility Rate in Developing Countries Desired Fertility versus Total Fertility Rate in Developing Countries
Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for ... Compute the rate of discount allowed on a rotor-tiller that lists for $341.00 and is sold for ...
Video: Protein Structure - Primary, Secondary, Tertiary and Quaternary

For a complete list of videos, visit our video library