« previous next »

Author Question: Beta is the slope of the security market line. Indicate whether the statement is true or ... (Read 105 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?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Dial-A-Flo in-line device to regulate IV flow. Dial-A-Flo in-line device to regulate IV flow.
Three days after the Boston Marathon explosion, the FBI released this photograph that had been taken Three days after the Boston Marathon explosion, the FBI released this photograph that had been taken
Social Security Payments to Beneficiaries Social Security Payments to Beneficiaries
How to find the equation of a line that is parallel to a line passing through a point How to find the equation of a line that is parallel to a line passing through a point
Slope puzzle Slope puzzle
A diagram showing one of Mendel’s crosses. True-breeding strains of pea plants with smooth and ... A diagram showing one of Mendel’s crosses. True-breeding strains of pea plants with smooth and ...
Video: Structure of a Ribosome

For a complete list of videos, visit our video library