Question: current yield on 30 year treasury is 4.00% What is the expected market value of the following bonds in the ML Brokerage Account if interest
current yield on 30 year treasury is 4.00%

What is the expected market value of the following bonds in the ML Brokerage Account if interest rates decrease by 1.68% ? Assume interest is semiannually. $50,000 US Treasury Bond - These stocks do not currently pay dividends. \begin{tabular}{lcccc} \hline Mutual Funds & Price/share & Shares & Cost Basis & Fair Market Value \\ \hline Emerging growth fund & $21.00 & 500 & $12,250 & $10,500 \\ Balanced fund & $18.00 & 425 & 8,925 & 7,650 \\ Municipal bond fund & $12.00 & 250 & 3,500 & 3,000 \\ & & & $24,675 & $21,150 \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
