A 6 percent bond will pay you $1,060 one year from now. The interest rate in the
Question:
A 6 percent bond will pay you $1,060 one year from now. The interest rate in the economy is 10 percent. How much is that bond worth now?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (8 reviews)
Substituting into ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Vulture Ltd. is incorporated to invest in risky securities. On January 1, 2015, the company buys Volatile Ltd. bonds with a par value of $ 10,000. Vulture plans to hold these bonds until they mature...
-
(1) The Martin family recently deposited $1,000 in a bank account that pays a 3 percent nominal interest rate. Interest in the account will be compounded daily (365 days = 1 year). How much will they...
-
Publicity agents for the Detroit Felines announce the signing of a phenomenal new quarterback, Archie Parabola. They say that the contract is worth $1,000,000 and will be paid in 20 installments of...
-
WiCom Servicing completed these transactions during November 2020, its first month of operations: Required 1. Prepare journal entries to record the transactions. Use general journal page 1. 2. Set up...
-
Among other benefits, pets are thought to be great companions that increase satisfaction among pet owners, especially those who would otherwise live alone. A psychologist decides to test this notion....
-
The Best Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Rodriguez $45,000 and Escobedo $20,000. The firm is liquidated, and...
-
Top managers of Chase Financial Services are reviewing company per- formance for 2009. The income statement reports a 20% increase in net income over 2008. However, most of the net-income increase...
-
Chelsea Truman sells celebrity magazines on Sunday morning in an area surrounded by three busy shopping centers. Demand for the magazines is distributed as shown in the following table: Chelsea has...
-
Why was the yield to maturity of India Motors's bond higher than the nominal rate at issue?
-
The article "Effects of Bottle Closure Type on Consumer Perception of Wine Quality" (Amer. J. of Enology and Viticulture, 2007: 182-191) reported that in a sample of 106 wine consumers, 22 (20.8%)...
-
Assuming individuals hold no currency, calculate the money multiplier for each of the following reserve ratios: 5 percent, 10 percent, 20 percent, 25 percent, 50 percent, 75 percent, 100 percent.
-
Explain in words why the present value of $100 to be received in 10 years would decline as the interest rate rises.
-
In the inverting amplifier circuit of Fig. 5-11, v 1 (t) is the input and v 2 (t) is the output. Let R i = , R o = 0, and assume the 741 op amp model specified by Example 5.26. (a) Find the circuits...
-
As part of the process, scientists will transport containers of supplies, tools and machinery so that they are waiting for the colonists when they arrive. The first container shipped has a mass of...
-
A load of 5KN is to be raised using a steel wire. Find the min. diameter of the wire required to raise this load. Yield stress of steel is 300 MPa. Space Diagram steel wire diameter, d. 5KN Free Body...
-
A dish of hot food has an emissivity of 0.43 and emits 16 W of thermal radiation. If you wrap it in aluminum foil, which has an emissivity of 0.06, how much power will it radiate? Pfoil = i
-
1. Reflect on why India has become such an important growth market for online shopping companies. Discuss the importance of first-mover advantages in India. How is Amazon positioning itself to...
-
Safety factors: for the stress = 1.75, for the deflection L/100 Check relevant standards It should be optimum sized. Overall dimensions: for the vessel: Height: 5m, Diameter: 2.5m, Structure height:...
-
Write an equation that can be used to solve the problems. Solve the equation and find the desired value(s). The product of 3 and a number, increased by 8, is 6 less than the number.
-
Bonus shares can be issued out of revenue reserves. True/False?
-
Suppose that Pattys Pool has the demand data given in Table in the chapter. Further, suppose that Patty has just two types of costs: (1) rent of $25 per day and (2) towel service costs equal to 50...
-
In Figure, the equation for each countrys demand curve is QD = 160 40 P, where QD represents millions of doses. Use this demand equation to answer the following questions: a. Suppose the price...
-
Suppose that Pattys Pool has the demand data given in Table. Further, suppose that Patty has just two types of costs: (1) rent of $24 per day and (2) towel and other service costs equal to $5 per...
-
"Paula is a social worker in a fostercare agency. She has been working with 9-year-old Rita, her foster mother, Flo, and biological mother, Stella, for three years. Rita was removed from her mother's...
-
You are 22 years old and currently have $100,000 in savings for retirement. You will start making annual contributions to your savings at the beginning of each year in the amount of $2,500. If you...
-
You have an investment opportunity that pays $500 every three months for 7 years and an additional $14,000 at the end of the seventh year. How much is the investment worth today if you can invest in...
Study smarter with the SolutionInn App