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Business High School

You purchased a five-year annual payment 6 percent coupon bond for $1,000 and you planned on holding it to maturity. However, right after you bought the bond, it was called at $1,043.29 when all interest rates fell to 5 percent and remained there for the full five years. You reinvested the money for the full five years. What was your annual compound rate of return off your original investment? A. 6.00 percent B. 5.89 percent C. 5.75 percent D. 5.23 percent E. 5.00 percent

2 months ago

Solution 1

Guest #2391064

2 months ago

Answer:

B. 5.89 percent

Explanation:

First, we calcualte the amount of the called bond at the 5% rate during 5 years

$Principal \: (1+ r)^{time} = Amount$

Principal 1,043.29

time 5.00

rate 0.05000

$1043.29 \: (1+ 0.05)^{5} = Amount$

Amount 1,331.53

Now, we invest 1,000 and end up with 1,331.53 after 5 year so we use the same formula of future value of a lump sum to determinate the rate:

$Principal \: (1+ r)^{time} = Amount$

Principal 1,000

time 5.00

rate r

$1,000 \: (1+ r)^{5} = 1,331.53$

$r = \sqrt[5]{\frac{1331.53}{1000}} -1$

r = 0.058937166

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Solution 1

Answer:

Joe

Explanation:

Because of Joe's need for achievement, he will take the extra responsibility to do a good job, meaning there will be a high level of personal responsibility.

Also I'm order to achieve success Joe will make sure to effectively give feedback, to verify he is on track to complete the job successfully.

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Answer:

you decide to create a windows to go drive so that you can take your computing environment home from work

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Solution 1

Answer:

b. double taxation.

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Answer:

The company needs to quantify well ahead the benefits of implementing a solution to a problem in order that such benefits derivable from the implementation can be weighed against associated costs of such course of action.

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Solution 1

Answer:

Blockbusting

Explanation:

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Solution 2

Answer:

blockbusting

Explanation:

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Then the same real estate agents would sell vacant houses to minorities at higher prices for the privilege of living in a white neighborhood.

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Answer:

Market equilibrium

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The intersection could be done by supply and demand curves

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Answer:

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Explanation:

Data provided in the question:

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Answer: Market research,

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Solution 1

Answer:

Price weighted index

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Answer:

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