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 51 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?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

The role of leptin in regulating appetite and metabolic rate. The role of leptin in regulating appetite and metabolic rate.
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
Countries where malaria is prevalent today are located in the warm tropics and subtropics Countries where malaria is prevalent today are located in the warm tropics and subtropics
The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ... The decay rate of a radioactive sample decreases from 175 kBq to 12.4 kBq in 18.3 s. What is ...
4 QUESTIONS PEASE I NEED IT TODAY AND I DONT HAVE MORE CREDITS TO START A NEW TOPIC 4 QUESTIONS PEASE I NEED IT TODAY AND I DONT HAVE MORE CREDITS TO START A NEW TOPIC
Odds please I need it today Odds please I need it today
Video: Digestive System Animation

For a complete list of videos, visit our video library