What is the pre-tax annual rate of return on this bond
Course:- Microeconomics
Reference No.:- EM13700155

Assignment Help >> Microeconomics

You buy a bond for $1118 that pays $20 interest every 6 months. It will reach maturity in 9 years at which time it will return its face value of $1000 plus the final $20 interest payment. What is the pre-tax annual rate of return on this bond? Estimate to 2 decimal places.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
What factors led to the mortgage default crisis and ultimately the Housing Crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing?
Parties to a contract should have and understanding of what they are undertaking—a meeting of the minds. Provide an example of two parties who have reached such a clear unders
Suppose the Service reduces its personnel costs to $100,000 per year and the per sample cost to $20. What will this do to the breakeven point? (Hint: Again, look carefully a
At times, people will suggest that the Fed should try and achieve an inflation rate of zero percent. If we assume that velocity is constant, does this goal of zero inflation
What is the equation for the Marginal Social Cost curve? Use this to figureout what the socially optimal amount of widgets is. Is the socially optimal thesame amount as you fo
George has $28.00 to spend on soda pop and pretzels. Determine the number of cans of soda pop and pretzels that will be optimal for George. Explain your reasoning regarding
In developing nations, young women have lower enrollment rates in secondary school than do young men. Describe several ways in which greater educational opportunities for yo
Collecting data form secondary source or you can use the data that you already have, (I can help you to find data if you need any help). Decision of the types of model you wa