Determine the interest rate on the bond

Assignment Help Macroeconomics
Reference no: EM132506417

If a one-year bond has a face value of $5,000 and is sold for $4,500, what is the interest rate on the bond? Round to one decimal place.

Reference no: EM132506417

Questions Cloud

Which of them gets the most money : If each family member originally deposited $500 in their accounts, which of them gets the most money when they cash in their accounts?
BMP4004 Contemporary Issues in Marketing Assignment : BMP4004 Contemporary Issues in Marketing Assignment Help and Solution, University of Bolton - Assessment Writing Service - Reflect on the importance
What about outright bribery payments : Given that the FCPA permits facilitating payments, do you believe it is ethically appropriate for companies to deduct such payments from their income taxes?
How much additional government spending : The economy is in recession: real GDP is $5 billion. Real GDP is $1 billion short of the natural level of GDP. The government wants to move the economy
Determine the interest rate on the bond : If a one-year bond has a face value of $5,000 and is sold for $4,500, what is the interest rate on the bond? Round to one decimal place.
What is the definition of risk and definition of return : What is the definition of risk? What is the definition of return? What is their relationship? Please use a real life financial situation that clearly lays out
Advantage of monetary policy : Can you explain why the advantage of monetary policy is that it always works, and a rise in rates reduces spending an growth of GDP
Features that the developing countries : Write down any five of the features that the developing countries tend to have in common, on average, in comparison with the developed world.
How we identify and utilize psychological principles : Psychological principles are theories and beliefs about major areas of our lives, like cognitions, intelligence, social groups, habit, behavior.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd