Log in
Economics
2
answers
0
watching
13
views
13 Dec 2019

A $10,000 bond that matures in 20 years with interest at 8% per year payable quarterly was issued 4 years ago. If the bond is purchased now for $10,000 and held to maturity, what will be the effective rate of return per quarter to the purchaser?

Watch
2
answers
0
watching
13
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Get unlimited access
Already have an account? Log in
Share
Reid Wolff
Reid WolffLv2
17 Dec 2019
Get unlimited access
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

A corporate bond has a face value of $10,000 with a bond rate of 6%. The interest of the bond will be paid quarterly. The bond will mature in 10 years. If the bond is sold at $7,000 on the market, what is the yield (return) on the bond?

Determine the maximum purchase price you should be willing to pay now for a 6%, $10,000, 10-year bond with interest paid semiannually if we assume your MARR is 8% per year, compounded quarterly.

 

You have just purchased a municipal bond with a $10,000 par value of $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 5 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 7% per year compounded semiannually, what will be your minimum selling price for the bond?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in