subject
Business, 05.05.2021 19:10 carelee1269

A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610. This means that $4,610 is spent on the bond now. Every quarter, $125.00 is provided to the purchaser as the dividend. After 10 years, $5,000 is given to the purchaser.
If the bond is purchased and pays as scheduled, which of the following ranges of effective rate of return will the purchaser receive?
a. 11.00% - 12.00%
b. 10.00% - 10.50%
c. 12.01% - 14.01%
d. 10.50% - 10.75%

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 18:20
Saeed needs money to purchase tools, basic office supplies, parts to refurbish equipment, accounting software, and legal fees. believing saeed's business will be a success, an investor invests $5,000 to saeed open his business. in return, saeed agrees to repay the investor the $5,000 plus 17 percent of the profits of the business. calculate the return on investment for the investor if saeed's business makes $7,000 in profit as a total return of the business in its first year.
Answers: 1
question
Business, 22.06.2019 01:00
Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?
Answers: 3
question
Business, 22.06.2019 04:30
How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )
Answers: 3
question
Business, 22.06.2019 07:20
Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.
Answers: 1
You know the right answer?
A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610. This mea...
Questions
question
Mathematics, 14.02.2020 23:29