1. Business
  2. Economics
  3. 5...

Question: 5...

Question details

year. In or a) $737 b) $742 $746 s750 c) $847 0375 . Anna buys a corporat e bond from a brokerage firm for $750. The face value of the bond is $1,000, and it pays $40 in coupons each year. If Anna keeps the bond until it matures in 10 years, the rate of return Anna will earn a) 7.7% b) 59% c) 63% d) 4.2% e) 7.4% f) 5.3% h) 6.3% i)8.1% j) 8,5% k) 10.5% 12.3% m) 4.0% n) 7.2% 6. Assume Luke invested $450,000 and it retums S7,875 every quarter, forever. The effective gnnual interest rate closest to... Note: the first cash flow occurs one quarter after the investment. -a) 134%- 2.31% -c)0,58%- .322, 19% 07.49% g)8.11% h)1.75% i) 2.44% #5
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution