What will be the rate of return on her investment

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Reference no: EM13923015

1) Isabella purchased $20,000 worth of 26-week T-Bills for $19,525. What will be the rate of return on her investment? (Round your answer to two decimal places.)

2) An individual purchased a 6-year, $10,000 promissory note with an interest rate of 3.5%/year compounded semi annually. How much did the note cost? (Round your answer to the nearest cent.)

3) Juan is contemplating buying a zero coupon bond that matures in 16 years and has a face value of $50,000. If the bond yields a return of 5.25%/year, how much should Juan pay for the bond? (Round your answer to the nearest cent.)

4) Steven purchased 1000 shares of a certain stock for $25,400 (including commissions). He sold the shares 2 years later and received $33,200 after deducting commissions. Find the effective annual rate of return on his investment over the 2-year period. (Round your answer to two decimal places.)

Reference no: EM13923015

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