Remember
Register
AnswerMenu
Questions
Hot!
Unanswered
Categories
Ask a Question
About Us
All categories
Art
(182)
Business
(362)
Accounting
(0)
Economics
(362)
Macroeconomics
(0)
Microeconomics
(0)
Finance
(0)
Marketing
(0)
Management
(0)
Computer Science
(769)
English
(3)
Foreign Language
(1)
Geography
(623)
Health Sciences
(1,319)
Mathematics
(112)
Music
(457)
Physics
(246)
Political Science
(556)
Psychology
(744)
Science
(6,466)
Social Studies
(243)
Other
(10)
If you purchase a bond with a $1,000 face value and 0% coupon rate for $952.38, the effective interest rate is ______.
0
votes
7.5%
5.0%
2.5%
10%
asked
Jun 2, 2013
in
Economics
by
anonymous
Tweet
Please
log in
or
register
to add a comment.
Please
log in
or
register
to answer this question.
1 Answer
0
votes
5.0%
answered
Jun 3, 2013
by
Xyz
~Expert~
(
3,650
points)
Related questions
0
votes
1
answer
35
views
35
views
Assume a tread mill will cost $1,200 and, over the next 5 years, yield services valued at $1,000 annually. The treadmill will cost $300 annually for power and maintenance. At the end of the 5 years, the treadmill can be sold for $75. If the current interest rate on savings that the consumer will use is 4%, what is the net present value of the treadmill?
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
24
views
24
views
There is a 25% chance that a $100,000 investment will yield $25,000 and a 75% chance that the investment will yield $10,000. However, you are confident that if you purchase market research for $5000 you can with certainty invest the $100,000 and earn $20,000. In this case, the value of complete information is
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
15
views
15
views
The present value of a $1,000 bond is always equal to
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
28
views
28
views
A computer software start-up company is considering investing $2 million now and $2 million next year to launch. Then in the 3rd through the 10th years, they expect to earn a profit of $500,000 each year. What is the present value of the $4 million investment given a risk adjusted interest rate of 5%?
asked
Jun 2, 2013
in
Economics
by
anonymous
0
votes
1
answer
21
views
21
views
If the probability of outcome 1 is 0.75 with an expected payoff of $5000, and the probability of outcome 2 is 0.25 with an expected payoff of $20,000, then the expected value of the outcome is
asked
Jun 2, 2013
in
Economics
by
anonymous
...