Determine the amount would be willing to pay for the bond

Assignment Help Econometrics
Reference no: EM13238310

A $4700 municipal bond is offered for sale. The bond will pay 6 % annual interest by paying the $282 to the bondholder every year for a period of 12 years. At the end of 12 years, the $4700 will be paid to the bondholder along with the final interest payment of $282. Determine the amount you would be willing to pay for the bond if you consider 10 % nominal annual interest to be an appropriate bond yield.

Reference no: EM13238310

Questions Cloud

What is the mass of the skater : A speed skater goes around a turn that has a radius of 36 m. The skater has a speed of 12 m/s and experiences a centripetal force of 461 N
Determine the present worth of the annual disbursements : The maintenance costs associated with an investment are $0 for the first 8 years and $ 700 per year thereafter. The investment has an infinite life. With interest at 9 % per annum, determine the present worth of the annual disbursements.
State obtained by hydroboration-oxidation of the same alkene : produces an alcohol isomeric to one obtained by hydroboration-oxidation of the same alkene. Reduction of the alkene affords the compound C5H12, while ozonolysis yields an aldehyde, CH3CHO, as one of the products. Deduce the structure of the alkene..
Calculate the mass of air in the tank : A cylindrical air tank has dimensions diameter = 0.2m and height 0.8m, Calculate the mass of air in the tank (kg) (have to use ideal gas law, molecular weight of air)
Determine the amount would be willing to pay for the bond : A $4700 municipal bond is offered for sale. The bond will pay 6 % annual interest by paying the $282 to the bondholder every year for a period of 12 years. At the end of 12 years, the $4700 will be paid to the bondholder
Determine the payback period for the hand tools : A firm is considering purchasing $64800 of hand tools for use on a production line. It is estimated that the tools will reduce overtime work by $2000 the first year, with this amount increasing $1300 per year thereafter.
Explain what is the final temperature of the water : When 16 mL of water at 19 C is combined with 15 mL of water at 59 C, what is the final temperature of the water?. The specific heat of water is 4.184 J/g/K and its density is 1.0 g/mL.
Find the monopolists profit-maximizing output and prices : Suppose the demand curve for a monopolist is QD=500-P and the marginal revenue function as MR=500- 2Q The monopolist has a constant marginal and average total cost of $50 per unit
What is the approximate length of the column : A column of soldiers, marching at 141 paces per minute, keep in step with the beat of a drummer at the head of the column, What is the approximate length of the column

Reviews

Write a Review

Econometrics Questions & Answers

  Does ben consume equal amounts of x and y

Suppose Ben has a utility function U(x,y)= 4 * x^(0.5) * y^(0.8) The price of x is 2 dollars and the price of y is also 2 dollars. Explain WITHOUT USING ANY MATH AT ALL, just in a few words, which good is consumed more. Does Ben buy more x than y.

  What is the present worth of college degree

Perry is a freshman, he estimates that the cost of tuition, books, room and board, transportation, and other incidentals will be $30000 this year. He expects these costs to rise about $1500 each year while he is in college.

  Find the number of deposits thomas must make

Thomas has found a savings fund that pays interest of 2.62 percent compounded semiannually. He will make monthly deposits of $395 and he can make a deposit only once a month on the agreed payment date. Find the number of deposits Thomas must make.

  How much of total demand do the follower firms supply

Alchem (L) is the price leader in the polyglue market. All 10 other manufacturers (follower [F] firms) sell polyglue at the same price as Alchem. Alchem allows the other firms to sell as much as they wish at the established price and supplies the ..

  Estimate the average price of gas when a barrel of oil costs

hypothesis, critical values, or calculations you used to get your answer to receive full credit. You will have to decide which variable is the dependent variable and which variable is the independent variable Use 3 decimals.

  What is the opportunity cost of using the unused portion

The World of Videos operates a retail store that rents movie videos. For each of the last 10 years, World of Videos has consistently earned profits exceeding $37,000 per year. The store is located on prime real estate in a college town. World of V..

  Calculate the monopolist profit maximizing price

A monopolist's has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000 - 10P. Marginal revenue is given by MR= 100 - 1/5Q. A. Calculate the monopolist profit maximizing quantity, price and profit.

  What is the real dollar cost of the item now

Inspection equipment costs $2,000 now. The general price inflation rates for the past five years have been 2%, 3%, 4%, 3%, and 4%. What is the real $ cost of the item now

  How many more trips will you need to buy a boat

A Malibu boat will cost $32,500 when purchased. Gasoline and maintenance will approximately cost $25/hour, and equipment rental will cost $10/hour. The boat will be used for wakeboard instructing and will generate revenue of $100/hour.

  What is the expected wage in the city

Each member of the family has the opportunity to migrate to the nearest city where there are two different types of jobs. Informal jobs are available to everybody and pay $200. Formal sector jobs are more difficult to get and pay $800. The probabi..

  Calculate the equilibrium number of cars commuting by route

Suppose you are hired as a traffic consultant to improve traffic patterns among commuters. How should these 5000 cars be allocated over the two routes in order to minimize the total amount of time cars are commuting

  Net of payment to owners top manager because of the changes

Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000, and her store made $120,000 in profits (not counting payment to her top manager). She suspec..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd