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timofeeve [1]
4 years ago
10

A 30-year, $1,000 strip bond was traded for $167, four years after it was issued. What was the semi-annually compounded nominal

rate at that time? Calculate percentages accurate to the nearest 0.01%.
Mathematics
1 answer:
Anna007 [38]4 years ago
4 0

Answer:

The semi-annually compounded nominal rate at that time is 7%

Step-by-step explanation:

In order to calculate the semi-annually compounded nominal rate at that time we would have use the following formula:

PV= FV/(1+r)^n

According to the given data we have the following:

PV=$167

FV=$1,000

n=30-year, and strip bond was traded four years after it was issued, hence, n=(30-4)*2 =52

Therefore, 167= $1,000/( 1+r)^52

167/$1,000 =1/(1+r)^52

0.167 =1/(1+r)^52

r =3.50%

Therefore, The semi-annually compounded nominal rate at that time=3.50%*2

The semi-annually compounded nominal rate at that time=7%

The semi-annually compounded nominal rate at that time is 7%

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Answer: choice 1) 4

-----------------------------

Explanation:

The equation x^3+6x^2-x-10 = 0 is the same as 1x^3+6x^2-x-10 = 0
The first term is 1x^3 and the last term is -10
Pull away the coefficient of the first term and it is 1

Focus on the first coefficient (1) and the last term (-10)

List out the factors of each:
Factors of 1: -1 and 1
Factors of -10: -10, -5, -2, -1, 1, 2, 5, 10

Divide the factors of the last term (-10) over the factors of the first coefficient (1) to get...
-10/(-1) = 10
-10/(1) = -10
-5/(-1) = 5
-5/(1) = -5
-2/(-1) = 2
-2/(1) = -2
-1/(-1) = 1
-1/(1) = -1

10/(-1) = -10
10/(1) = 10
5/(-1) = -5
5/(1) = 5
2/(-1) = -2
2/(1) = 2
1/(-1) = -1
1/(1) = 1

The unique results we get are: -1, 1, -2, 2, -5, 5, -10, 10

So those are the possible rational roots of x^3+6x^2-x-10 = 0
This rules out choice 2, choice 3, choice 4. The only thing left is choice 1. 
The value 4 is not a possible rational root of x^3+6x^2-x-10 = 0

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Answer:

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Step-by-step explanation:

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