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Ksivusya [100]
3 years ago
11

What is the percentage return (interest rate) an investor will receive if they purchase a zero-coupon bond today for $954.70 tha

t will mature in one year and pay $1,000 at maturity?
Business
1 answer:
DanielleElmas [232]3 years ago
8 0

Answer:

Interest rate = 4.75% (approx)

Explanation:

Given:

Face value of bond = $1,000

Present value of bond = $954.70

Interest rate = ?

Computation of Interest rate :

Interest rate = [\frac{Face value of bond}{Present value of bond}-1] \times 100\\

Interest rate = [\frac{1,000}{954.70}-1] \times 100\\\\Interest rate = [1.04744946-1] \times 100\\Interest rate = [0.04744946] \times 100\\= 4.744946

Interest rate = 4.744946%

Interest rate = 4.75% (approx)

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Your information is incomplete as you didn't give enough information. Therefore, an overview of tax will be given. A tax is a compulsory levy that's paid to the government.

In a situation when an individual claims 0 on their tax, then such a person is having the largest amount that will be withheld from their paycheck for federal taxes.

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3 years ago
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Answer:

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8 0
3 years ago
Behaving in an acceptable manner within a workplace environment is refered to as workplace etiquette.
alexandr402 [8]
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Answer:

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Answers:

<u>etiquette</u> and <u>voice</u>

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