Suppose that comparable bonds are paying 8 percent find the

Assignment Help Microeconomics
Reference no: EM13451624

Determining Interest and Approximate Bond Value. 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 8 percent.

a. What is the annual dollar amount of interest that you will receive from your bond investment?

b. Assuming that comparable bonds are paying 8 percent, what is the approximate dollar price for which you could sell your bond?

c. In your own words, explain why your bond increased or decreased in value.

Reference no: EM13451624

Questions Cloud

Ontario inc manufactures two products standard and enhanced : ontario inc. manufactures two products standard and enhanced and applies overhead on the basis of direct-labor hours.
Calculate the number of equivalent units and the cost per : amy electronics makes cd players in three processes assembly programming and packaging. direct materials are added at
As an employee of a company what can you personally do to : as an employee of a company what can you personally do to minimize workplace discrimination and harassment? your
Louis pasteurrsquos discovery of the immune effects of : 1.a matrix corporate structure is primarily associated withnbspnbspnbspnbspnbspnbspnbspnbsp dual lines of
Suppose that comparable bonds are paying 8 percent find the : determining interest and approximate bond value. assume that three years ago you purchased a corporate bond that pays
Discuss how inflation or purchasing power impacts stated or : explain how inflation or purchasing power impacts stated or nominal interest rates.what are the pros and cons of
What is the value of this 20 year lease the first payment : what is the value of this 20 year lease? the first payment due one year from today is 2000 and each annual payment will
On january 1 2012 palmer company leased equipment to woods : on january 1 2012 palmer company leased equipment to woods corporation. the following information pertains to this
Suppose you bought corporate bond at its current market : assume you purchased a corporate bond at its current market price of 850 on january 2 2002. it pays 9 percent interest

Reviews

Write a Review

Microeconomics Questions & Answers

  Determine the equilibrium price and quantity

Determine the equilibrium price and quantity and explain its meaning to your chosen company. Indicate how your chosen company's management should use this information to make sound strategic decisions.

  Develop the change management plan and communication plan

riordan manufacturing has decided to make a change to companys customer management system. the company does not

  Determining breakeven output-total sales revenue

Find out the breakeven output and total sales revenues. Estimate the output that would generate total profit of 60,000 and total sales revenue at that output level.

  Had the government not given the wheat back to the farmer

In 1983, the Reagan administration introduced a new agricultural program called the Payment-in-Kind Program. To see how the program worked, let"s consider the wheat market:

  The elastic demand is depends on

The price of cranberry juice suddenly increases. As a result, Glenda begins drinking more grape juice, which is less expensive, but tastes just as good to her.

  Te demand curve for a product is given by qdx 1200 - 3px

the demand curve for a product is given by qdx 1200 - 3px .01pz where pz 300.a. what is the own price elasticity of

  Explain operational concerns surrounding introduction of a

explain operational concerns surrounding introduction of a sport energy drink into indonesia market by exporting from

  Why a government might want to regulate a monopolist

Explain why a government might want to regulate a monopolist and How can governments negate the adverse side-effects of gold-plating and cost padding?

  What will be the average cost of producing the 40th watch

Suppose that the learning effect coefficient in the production of wrist watches is -0.2. If the average cost of producing the first watch is $100, what will be the average cost of producing the 40th watch?

  Consider a perfectly competitive market with an upward

Consider a perfectly competitive market with an upward sloping market supply curve. Explain the effects of a decrease in supply for the equilibrium price and quantity as well as the total amount of spending. How does the answer depend on the nature o..

  Create the application to improve cross-selling to current

develop an application to improve cross-selling to current customers. the current sales management system has separate

  Sanjay likes his job so much that he would be willing to do

Gordon lists his old Lionel electric trains on eBay. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.

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