« previous next »

Author Question: Beta is the slope of the security market line. Indicate whether the statement is true or ... (Read 47 times)

EAugust

  • Hero Member
  • *****
  • Posts: 550
on: Jul 10, 2018
Beta is the slope of the security market line.
 
  Indicate whether the statement is true or false

Question 2

Vitmix Industries Inc. is issuing a zero-coupon bond that will have a maturity of fifty years. The bond's par value is 1,000, and the current yield on similar bonds is 7.5. What is the expected price of this bond, using the semiannual convention?
 
  A) 25.19
  B) 250.19
  C) 750.00
  D) 1,000.00


jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

Answer: A
Explanation: A)
Zero coupon bond price = = = 25.19
MODE = END, P/Y = 2, C/Y = 2
INPUT 100 7.5 ? 0 -1,000
KEY N I/Y PV PMT FV
CPT 25.19


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

EAugust

  • Hero Member
  • *****
  • Posts: 550
Reply #2 on: Jul 10, 2018
Thank you :)


jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Reply #3 on: Jul 10, 2018
Happy to help you


« previous next »
 

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

If you want to show differences between items at the same time, a bar graph is more effective than a If you want to show differences between items at the same time, a bar graph is more effective than a
Example of Reconciling a Bank Statement Example of Reconciling a Bank Statement
Fuel should be heard returning to the fuel tank at the fuel return line if the fuel-pump and ... Fuel should be heard returning to the fuel tank at the fuel return line if the fuel-pump and ...
Write the equation in general form of the line passing through the point Write the equation in general form of the line passing through the point
OraQuick. A negative result would show a red line at the "C" mark, whereas a positive ... OraQuick. A negative result would show a red line at the "C" mark, whereas a positive ...
Waiting in line for a photocopier Waiting in line for a photocopier
Video: Sickle Cell Anemia

For a complete list of videos, visit our video library