Answer:
6%
Explanation:
Data provided as per question is as given below:-
Redeemed amount = $1,000
Sale value of Bond = $687.25
Number of year = 5
The computation of interest rate is as shown below:-
Interest rate = (Redeemed amount ÷ Sale value of bond) ^ (1 ÷ Number of Year) - 1
= (1,000 ÷ 747.25) ^ (1 ÷ 5) - 1
= (1.338) ^ (0.2) - 1
= 0.06
= 6%
Answer:
The correct answer is Community swimming pools.
Explanation:
Taking into account the duties of public entities that are not susceptible of being assigned to individuals, within the three requests only that of community pools can be privatized due to the low relationship they have with the responsibilities of a public entity of this type. The other two requests are of a different nature, and, despite having involvement with other forces or interests, the local government must ensure proper management of public resources that is evident in the citizens.
Answer:
b. The bond puttable in 10 years will depreciate more than the bond puttable in 5 years
Explanation:
Data provided in the question
20 -year corporate bond i.e issued at par at 10%
One issue is for 5 years
other issue is for 10 years
Now if the interest rate rise by 200 basis points
So,
Based on the above information
If a bond is issued at a future date, any price drop due to higher interest rates will be eliminated as the holder is able to return the bond to the issuer earlier
Hence, the option B is correct