« previous next »

Author Question: Beta is the slope of the security market line. Indicate whether the statement is true or ... (Read 130 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?

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?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

Critical care patients are twice as likely to receive the wrong medication. Of these errors, 20% are life-threatening, and 42% require additional life-sustaining treatments.

The violation of mores is a serious matter. In this case, it is serious enough that security at an ... The violation of mores is a serious matter. In this case, it is serious enough that security at an ...
Two wells are filled with the same antigen, and when they diffuse to the antibody, they make a line ... Two wells are filled with the same antigen, and when they diffuse to the antibody, they make a line ...
Risk & Aseptic Processing - RABs Filling Line Risk & Aseptic Processing - RABs Filling Line
Tai chi walk along straight line. From tai chi stance, shift weight to the back leg and turn the ... Tai chi walk along straight line. From tai chi stance, shift weight to the back leg and turn the ...
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
The distribution of malaria and of the hemoglobin variants beta S and beta E. The distribution of malaria and of the hemoglobin variants beta S and beta E.
Video: Hypoglycemia Animation

For a complete list of videos, visit our video library