1. As with most bonds, consider a bond with a face value of $1,000. The bond's maturity...
Question:
1. As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 12 years, the coupon rate is 9% paid annually, and the market yield (discount rate) is 19%.
What is the bond's Current Yield?
Enter your answer as a percentage, without the '%' sign, and rounded to one decimal. For example, if your answer is 0.031416, which is equivalent to 3.1416%, just enter 3.1
2.0 You get a new credit card from your bank. The document that comes with the card informs you that the interest rate on that card is 13.8% APR. What is the effective annual rate you'll actually be paying? The credit card company uses monthly compounding of interest.
Enter your answer as a percentage, rounded to 2 decimals, and without the percentage sign ('%'). For example, if your answer is 0.23456, then enter 23.46
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman