ewitskarleigh5746 ewitskarleigh5746

06-06-2020
Business

contestada

You have just purchased a U.S. Treasury bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate will you earn on this bond

Respuesta :

Tundexi Tundexi

09-06-2020

Answer:

6% interest rate

Explanation:

The equation you should use is just a variation of the PV formula:

r = (FV/PV)1/t -1

r = ($1000/$747.25)1/5 - 1

r = 6% interest rate

The interest rate i will eventually earn on this bond is 6%

Answer Link

Otras preguntas

what time does the train leave? she asked

Drag the tiles to the correct boxes to complete the pairs. Given: u = <-2, -7>, v = <3, -4>, and w = <5, 1>. Based on the components of the gi

Using diplomacy as a way to end conflicts between nations is one of the functions of • the UN. • NGOs. • the Chief Negotiator. the UN General Assembly.

Which of the following is an example of a foreign direct investment (FDI)? 1. A company in the United States sells payroll software to companies in Western Euro

Discuss terms in detail with context of Emerging Technology?

brian is in a 100 mile bike race. he needs to average 12.5 mph if he wants to complete the race before it ends. in a practice ride he biked 60 miles. for the fi

Standard form: find the sum of -3x and 8x

A bag contains 3 red marbles and 4 blue marbles. A marble is taken at random from the bag and replaced. Another marble is taken from the bag. Work out the pro

BLUE FOX STOP DELETING MY STUFF

Which point of view on social issues does this statement most likely represent? Supporting people experiencing homelessness and cutting taxes are both equally i

Q&A Education