Suppose that today you buy a bond with an annual coupon rate of 8 percent for $1,100. The bond has 15 years to maturity. What ra
te of return do you expect to earn on your investment
1 answer:
Answer:
6.91%
Explanation:
In this question we use the RATE formula that is shown on the attachment below:
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the rate of return is 6.91%
You might be interested in
Answer:
The complete question is given in the explanation box below and the solutions to the problem is shown in the pictures attached herewith accordingly. Thank you.
Explanation:
a. Determine the degrees of freedom for this test.
b. Compute the test statistic.
c. Compute the p-value.
d. What is your conclusion? Let α = .05.
Answer:
A. 4.3 batches
B. 215 parts
C. 3 batches
D. 184 parts
Explanation:
Please find explanation attached
Answer: $10,906
Explanation:
Given that,
Purchased machinery at the beginning of Year 1 = $86,100
machinery has an estimated life of five years,
Estimated residual value = $4,305
Accumulated depreciation = $49,077 at the end of Year 2
Year 3 Depreciation expense:
=
=
= $10,906