Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound. Robinson's marginal utility is 30 for the last p
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Answer:
10.60%
Explanation:
First, we calcualte the returns and then solve for the rate like a normal compounding:
<u>returns:</u>
annual coupon payment. 1,000 face value x $ 13.68 = $ 136.80
sales price: 913.73
<u>total:</u> 136.8 x 6 + 913.73 = 820.80 + 913.73 =
<em />
<u>cost: </u> 947.68
to record the effective rate of return:
<u>effective rate of return:</u> 0.105992287 = 10.60%