Irina just recently sold a $2,000 par value government of Canada zero-coupon bond for $1,100. If the bond matures in 4 years, what is the interest rate received for the asset by Irina? O A 12% O B. 18% OC. 10% OD 16%
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- A bond has a face value of $1000 and a coupon rate of 5.2%. What would the rate of return be if the bond was bought for $983.6 and sold one year later for $1008.5? Select one: O a. 8.61% O b. 8.24% O c. 7.82% O d. 7.21%Calculate the maturity value of a 300-day, $6,000 simple interest term deposit earning 5.15%. O a. $7,021.99 O b. $6,309.00 O c. $6,111.78 O d. $6,253.97 e. $5,756.34A welder will deposit P500.00with a savings and loan association at the beginning of each 4 months for 10 years. If the association pays interest at the rate of 7% every 4 months, find the sum of his credit just after the last deposit. O a. P22,877.00 O b. P21,787.00 O c. P21,788.00 O d. P21,877.00
- Question 12 Not yet answered Pointa eut of 1 F Flag question Suppose you purchase a bond with a coupon of $50 for $1,010. You sell it one year later for $900. What rate of return did you earn? Select one: OA 10.89% O B. 5.94% OC - 10.89% O D. 5.94%If 1 OMR is equal to 6.1 USD, then find the value of 1620 OMR value in USD. O a. 265.57 O b. 9882 0.0037 O d. 9000If you are expecting to get OMR 32501 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: O a. 30403.18 O b. All the given choices are not correct Oc. 25097.30 O d. 11557.97 O e. 24885.15
- Using the following spot rates for the following 4 strips of a 2-year semi-annual 3% coupon T-Note, what would you expect the YTM of this bond to be? Term Spot Rate 6 month 19s 12 month 851% 18 month 9.50 24 month 9.54% 4.7G6 O 8.94% 8.32% 9.52% • 14.63%You deposit $700 in your savings account for a year. By the end of the year, the value of your deposit increases to $730. What interest rate is your bank paying on the savings account? Choose one: O A. 0.04% B. 0.23% C. -4.11% D. 4.29%If you borrow $4,300 to buy a car at 9% per year compounded monthly, to be repaid over the next six years, what is your monthly payment? Lüffen birini seçin: a. $77 O b. $81 O c. $60 O d. $8 O e. $1,112
- Mr. Consunji plans to retire in fifteen years and wants an account that will pay him P25,000 a year for the next 15 years assuming a 6% annual effective interest rate, what is the amount he would need to deposit now? O a. P242,680.00 O b. P242,086.00 O c. P242,806.00 O d. P224,806.00An IT man buys boxes of diskettes and is to pay for it by making 30 monthly payments of P50.00 each, with interest on the unpaid balance at 6% interest rate. What is the purchase price? O a. P1,039.00 O b. P1,930.00 O c. P1,390.00 O d. P1,309.00Lewis’s management has been considering movingto a new downtown location, and they are concerned that these plans may come to fruition priorto the equipment lease’s expiration. If the moveoccurs then Lewis would buy or lease an entirelynew set of equipment, so management wouldlike to include a cancellation clause in the leasecontract. What effect would such a clause haveon the riskiness of the lease from Lewis’s standpoint? From the lessor’s standpoint? If you werethe lessor, would you insist on changing any ofthe other lease terms if a cancellation clause wereadded? Should the cancellation clause containprovisions similar to call premiums or any restrictive covenants and/or penalties of the type contained in bond indentures? Explain your answer.