12)Alex buys a bond for $10,000 and receives interest payments of $500 every six months. The interest rate on the bond is approximately Group of answer choices   4 percent. 8 percent. 10 percent. 15 percent.

"Knowing how to secure your financial well-being is one of the most important things you'll ever need in life. You don't have to be a genius to do it. You just need to know a few basics, form a plan, and be ready to stick to it. No matter how much or little money you have, the important thing is to educate yourself about your opportunities. At the SEC [Securities and Exchange Commission], we enforce the laws that determine how investments are offered and sold to you. These laws protect investors, but you need to do your part, too. No one can guarantee that you'll make money from investments you make." Use the excerpt from the SEC's Guide to Saving and Investing to answer the following. Be sure to write in complete sentences. Explain different types of investments and savings accounts and how they help your money grow over time. Describe the importance of government agencies, like the SEC, in protecting your investments.

Suppose you received a US savings bond as a gift, and the bond pays $100 at maturity, which is ten years from now.  What happens to the present value of this bond payment if the interest rate increases?   A. Present value increases   B. Present value is not affected   C. Present value declines

1. Your firm has decided to purchase a new $15,000 machine. You can pay now and take a 3 percent discount or pay $6,000 each year for the next three years. What is the interest rate at which the two alternatives are equal? Why?

If the current price of a bond is greater than its face value: A) There is no right answer. B) the yield to maturity must be larger than the current yield. C) the coupon rate must be equal to the current yield.

1. Assuming that the current interest rate is 3 percent, compute the present value (or price) of a five-year, 5 percent coupon bond with a face value of $1,000. What happens to the present value when the interest rate goes to 4 percent? Compute the new present value.

Which of the following would both make the interest rate on a bond higher than otherwise?   a. the interest it pays is tax exempt and it is short term   b. the interest it pays is tax exempt and it is long term   c. the interest it pays is taxed and it is long term   d. the interest it pays is taxed and it is short term

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond?   Multiple Choice   16.7 percent   8.4 percent   15 percent   13.6 percent   10 percent

What is the expected return from an investment if there is a 20 percent chance of a 4 percent return, a 40 percent chance of a 8 percent return, and a 40 percent chance of a 12 percent return

Question 4. Working with Numbers and Graphs Q4 The face value of a bond is $6,000, and the annual coupon payment is $180. The coupon rate is_