« previous next »

Author Question: A zero coupon bond A) pays no annual interest. B) sells at face value. C) are a ... (Read 101 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?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Cushing syndrome. This syndrome includes the symptoms of obesity, moon face, hyperglycemia, and musc Cushing syndrome. This syndrome includes the symptoms of obesity, moon face, hyperglycemia, and musc
Ionic Bond Ionic Bond
Peptide bond formation Peptide bond formation
Devices used to deliver respiratory drugs: (b) nebulizer with face Devices used to deliver respiratory drugs: (b) nebulizer with face
In plant fossils, leaf margin is used to estimate mean annual temperature In plant fossils, leaf margin is used to estimate mean annual temperature
A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ... A non-interest-bearing five-year note for $54600.00 issued May 1, 2015, is discounted April 1, ...
Video: Language Areas Animation

For a complete list of videos, visit our video library