This topic contains a solution. Click here to go to the answer

Author Question: You want to have 14,521 at the end of four years. How much do you have to invest today to accumulate ... (Read 257 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
You want to have 14,521 at the end of four years. How much do you have to invest today to accumulate that total if you can earn 6 compounded annually?
 
  A) 11,501.99
  B) 12,192.11
  C) 11,524.60
  D) 11,287.51
  E) 11,853.46

Question 2

Which of the following statements about the relationship between yield to maturity and bond prices is FALSE?
 
  A) When the yield to maturity and coupon rate are the same, the bond is called a par value bond.
  B) A bond selling at a premium means that the coupon rate is greater than the yield to maturity.
  C) When interest rates go up, bond prices go up.
  D) A bond selling at a discount means that the coupon rate is less than the yield to maturity.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

af

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

A

Answer to Question 2

Answer: C
Explanation: C) When interest rates go up, bond prices fall.




Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)


tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

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?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

For a complete list of videos, visit our video library