« previous next »

Author Question: A zero coupon bond A) pays no annual interest. B) sells at face value. C) are a ... (Read 93 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
on: Jul 10, 2018
A zero coupon bond
 
  A)
 
  pays no annual interest.
  B)
 
  sells at face value.
  C)
 
  are a poor choice for retirement funds.
  D)
 
  depreciates in value as it matures.

Question 2

What is the Rule of 72? Why do you think the Rule of 72 came into widespread use? Give an example of where you think the rule could be useful.
 
  What will be an ideal response?


rleezy04

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: The Rule of 72 is a quick method for estimating the amount of time necessary to double your money given a rate of return or, conversely the return required to double your money, given a particular time period. The rule developed prior to calculators and computers and served as a useful technique to estimate values for commodities and securities. The student should be able to identify a situation where it would be important to know the time or rate necessary to double the value of an investment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Pronation and Supination Pronation–Lying prone (face downward); also turning the palm downward. Supi Pronation and Supination Pronation–Lying prone (face downward); also turning the palm downward. Supi
Energy is released from the breaking of the phosphate bond in ATP when converting to ADP. Energy is released from the breaking of the phosphate bond in ATP when converting to ADP.
Clear the inguinal catchment area. Face the side of the table at recipient’s waist. Place your ... Clear the inguinal catchment area. Face the side of the table at recipient’s waist. Place your ...
Hydration of a Carbon–Carbon Double Bond Hydration of a Carbon–Carbon Double Bond
Hydrogen bond Hydrogen bond
Formation of a peptide bond between two amino acids Formation of a peptide bond between two amino acids
Video: Prone Position

For a complete list of videos, visit our video library