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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 231 times)

Lisaclaire

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on: Jul 10, 2018
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.


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af

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

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


Lisaclaire

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

isabelt_18

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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