Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for

Question:

Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for the bond was 4 percent. Today comparable bonds are paying 5 percent.

a. What is the approximate dollar price for which you could sell your General Electric bond?

b. In your own words, describe why your bond decreased in value.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Focus On Personal Finance

ISBN: 9780077861742

5th Edition

Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart

See More Books

Question Posted: Nov 22, 2018 08:42 AM

See More Questions

In 1994, you purchased a $1,000 corporate bond issued by Boeing. At the time, the interest rate for the bond was 6 percent. Today, comparable bonds are paying 4.30 percent. a. What is the approximate...
Assume that two years ago, you purchased a new Jeep Wrangler SE 4WD with a soft top for $16,500 using five-year interest-free financing. Today, the remaining loan balance is $9,900 and your Jeep has...
Assume that three years ago, you purchased a corporate bond that pays 9.5 percent. The purchase price was $1,000. Also, assume that three years after your bond investment, comparable bonds are paying...
Use Lagrange multipliers to find the maximum area of a rectangle inscribed in the ellipse (Figure 15): (-x,y) (x, y) 2 a2 b2 + J2 = 1 (x, y) (x, y) X
Iodine 131, 53I is used in diagnostic and therapeutic techniques in the treatment of thyroid disorders. This isotope has a half-life of 8.04 days. What percentage of an initial sample of 131, 53 I...
In problem use the RK4 method with h = 0.1 to obtain a four-decimal approximation of the indicated value. y' = xy 2 - y/x, y(1) = 1; y(1.5) x
A class has 60 students. Of these, 35 students are male and 20 students know how to play a musical instrument. Of the male students, five can play musical instruments. Find the probability that a...
The following accounts appeared in the separate financial statements at the end of 2014 for Pressing Inc. and its wholly-owned subsidiary, Stressing Inc. Stressing was acquired in 2009. Required: 1....
On June 1, 2025, Concord Company sold some equipment for $23800. The original cost was $81800, the estimated salvage value was $9200, and the expected useful life was 8 years. The equipment was fully...
Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common Stock, $20 stated value...
What are the risks involved when investing in state and local securities?
What is the difference between a Treasury bill, a Treasury note, a Treasury bond, and TIPS?
Problem refer to the following graph of y = f(x): Identify the x coordinates of the points where f(x) has a local maximum. fx) a d e
How does International Benefits works ? example of some countries?
Develop an evaluation plan utilizing the theories including identification of an appropriate external market and benchmarks for salary comparison data and analysis, on the job position of Strategic...
Some companies have moved away from individual commission-based incentive plans to team-oriented incentive plans. How do you think these changes will affect these companies? Which of these plans...
Read this article on COVID training a a Brampton Prison and answer the following questions: What sort of health and safety plans AND training did the Ontario Correctional Institute have for COVID?...
Present the two most important steps/actions in an investigation of an employee. In other words, to what two aspects of the investigatory process should a human resource professional pay most...
The following bar chart shows the number of major and minor league baseball players that were suspended for using steroids during the 2008 season. Can we use these counts to test whether the rate of...
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
What types of investments are appropriate as short-term investment alternatives?
What is a depository institution? List the three types of depository institutions.
Define and describe a chartered bank. Differentiate among Schedule I, Schedule II, and Schedule III banks.
4) Suppose that you are given the following information for BlackBerry's common stock: Year 2017 2018 2019 2020 2021 Price ($) 26.0 28.6 26.3 30.5 31.1 What is the arithmetic mean of the rate of...
1. Introduce and explain the Fashion Minimalism , how it came to be, e.g.: origins/inception. 2. Identify what the Fashion Minimalism and how it encompasses sustainability in the fashion industry. 3....
What are the x- intercepts of the function f(x) = (x+7)(x 6)? -

Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for

Question:

Step by Step Answer:

a The approximate dollar value is 80000 4 004 Face value Interes...View the full answer

Focus On Personal Finance

Related Video

Students also viewed these Business questions