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Author Question: Zero-coupon bonds are priced at steep premiums. Indicate whether the statement is true or ... (Read 54 times)

urbanoutfitters

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  • Posts: 530
on: Jul 10, 2018
Zero-coupon bonds are priced at steep premiums.
 
  Indicate whether the statement is true or false.

Question 2

You have just take out a 30-year, 120,000 mortgage on your new home. This mortgage is to be repaid in 360 equal end-of-month installments. If each of the monthly installments is 1,500, what is the effective annual interest rate on this mortgage?
 
  A) 15.87
  B) 14.75
  C) 13.38
  D) 16.25
  E) 16.49


tdewitt

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

Answer: FALSE
Explanation: Zero-coupon bonds are priced at deep discounts.

Answer to Question 2

A


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