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A: Here,
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A: Price of bond = 3333 Future Value of bond = 5550 N = 5 Interest rate = 6%
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if Marwa has a 1,00,000 bond with a 7% interest , how much will she has in 8 years.
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- Isabel purchases a 10-year, 5 percent savings bond with a face value of $1,000 by paying a premium for $1,100. She gets the dividend paid yearly. Determine the rate of return she gets on the bond assuming she keeps the bond till maturity.f. d. Erica is depositing $5,000 today and plans to invest her money for 5 years. If she can get a rate of return of 6% each year compounded annually, how much will she have in her account in 5 years? ( e. How much interest will Erica earn over the five year time span? ( CRIMSON Company issues a $1,000,000 bond with a stated interest rate of 5% payable each December 31. The market interest rate is 8%. The bonds mature in 20 years. What will be the price of the bond?Shannon purchases a bond for $1,142.38. The bond matures in 3 years, and she will redeem it at its face value of $1,200. Interest premiums are paid annually. If Shannon will earn a yield of 6%/year compounded yearly, what is the bond interest rate? % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.
- Ms. Jones wants to make 8% nominal interest compounded quarterly on a bond investment. She has an opportunity to purchase a 6%, $10,000 bond that will mature in 15 years and pays quarterly interest. Thismeans that she will receive quarterly interest payments on the face value of the bond ($10,000) at 6% nominal interest. After 15 years she will receive the face value of the bond. How much should she be willing to pay for the bond today?John buys a corporate bond that pays 15%, pays interest twice per year, and matures in 20 years. How many compounding periods are there?Ann buys a $550 savings bond which pays 1% simple interest. Explaining each line of your work, show how much the bond will be worth in 20 years.