What must be the minimum selling price now for the bond

Assignment Help Econometrics
Reference no: EM13241986

Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,with bond interest payable semiannually. Four years ago, the bond was purchased at $900. At least a 9% annual return on the investment is desired. What must be the
minimum selling price now for the bond in order to make the desired return on the investment?

Reference no: EM13241986

Questions Cloud

Find out the max of acetlysalicylic acid : David J hooper weighs out 13.1 grams of salicylic acid in a 250 mL flask and adds 7.5 mL of acetic anhyride (density=1.080 g/mL) Determine the max (theoretical number of grams) of acetlysalicylic acid he can prepare
How do the stages of production relate to isoquants : Diagram the total product, marginal product and average product functions showing the division points between stages I, II and III of the production process. How do these stages of production relate to isoquants.
Consider a couple decision about how many children to have : Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children.
Explain reaction of sodium hydroxide with sulfuric acid : The reaction of sodium hydroxide with sulfuric acid in water is given by the following equation
What must be the minimum selling price now for the bond : Mr. Smith wishes to sell a bond that has a face value of $1,000.The bond bears an interest rate of 8%,with bond interest payable semiannually. Four years ago, the bond was purchased at $900.
Using hatfield data and its industry averages : Answer the questions show all work for your answers; be complete; but, concise with your analysis. If you wish to elaborate on your calculations for the ratios, please do so
Compute the percent composition of copper : Calculate the percent composition of copper in the hydrate CuSO4.5H2O based on atomic weight data.
Calculate the premium of the second policy : Suppose your company is considering three health insurance policies. The first policy requires no tests and covers all preexisting illnesses. The second policy requires that all covered employees test negative for the HIV virus.
Explain what is the density of the mineral : All numerical answers must be reported to the correct number of significant figures. A piece of mineral believed to be galena (PbS) with a mass of 744.5 g displaces 48.6 mL of water. What is the density of the mineral

Reviews

Write a Review

Econometrics Questions & Answers

  Calculate the average cost of producing

Does the firm have constant, increasing, or decreasing returns to scale? Why? If wages are $20,000 per person per operating period and capital units for $3,000 per unit per operating period, calculate the average cost of producing 12,000 units and..

  Explain if they homogeneous in income and prices

Suppose David spends his income (I) on two goods, x and y, whose market prices are px and py, respectively. His preferences are represented by the utility function u(x; y) = lnx + 2lny (MUx = 1=x;MUy = 2=y). a. Derive his demand functions for x and..

  Do you anticipate earning a profit or a loss

You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 uni..

  How much per unit discount should the store make

Assume that the marginal cost to grocery of selling a bottle of salad dressing to customers who use coupons versus those who don't is identical and equal to $1.50. If the elasticity of demand for coupon users is 5 versus 1.25

  How much was the growth rate of real gdp

Suppose the real GDP of a country increased from 2,000 billion to 2,100 billion in one year. In the same year, population growth rate was 3%. How much was the growth rate of real GDP per capita in that year

  Determine which alternative the firm should select

Cash Flow A B C Initial cost $15,000 $27,500 $22,500 O & M costs / year $ 1,600 $ 375 $ 1,100 Annual cost savings $ 7,000 $ 9,500 $ 9,000 Salvage value $ 3,000 $ 7,250 $ 4,500 Using incremental rate of return analysis, determine which alternative ..

  Find what is the opportunity cost of an increase in income

(a) Calculate the opportunity cost of an increase in the number of hours spent studying in order to earn a 3.0 grade point average(GPA) rather than a 2.0 GPA. (b) Is the opportunity cost the same for a move from a 0.0 GPA to a 1.0 GPA as it is for ..

  Who among the three will make the investment

Barry's utility function is U(W) = W^2. Carl's utility function is U (W )= sqrt(W) . Each has wealth of only $100. An investment of that $100 has a 10% chance of netting $1,000 and a 90% chance of netting a loss of that $100.

  Determine what is the change in worker productivity

For both sets of calculations, compare the firm's output price and the calculated average variable cost and average total cost. Should the firm shutdown immediately when the total fixed cost equals $1,000,000

  What is the error for the current time period

Application of simple linear regression analysis to the estimation of demand equation has yielded the following: Q = 24 - 2P. If the current product price is P=$6 and the quantity sold per time period is Q=10, then what is the error (e) for the cu..

  What is 8month forward rate for one dollar in terms of won

Assuming the same interest rates, what isthe 8-month forward rate for one dollar in terms of won Is this an indirect or a directrate If the forward rate is an accurate predictor of exchange rates, in this case will thewon get stronger or weaker ag..

  Find income elasticity of demand for good

What is Harry's price elasticity of demand for good x, denoted "x;px ? From Harry's perspective, is x ordinary, Gien, or neither?  What is Harry's income elasticity of demand for good x, denoted "x;I? From Harry's perspective, is x normal, inferior, ..

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