Dividend compounded semiannually with face value

Assignment Help Business Economics

Reference no: EM13851319

How much do you have to pay for a bond rate that pays 6% dividend compounded semiannually, with a face value of $5,000 that is going to be paid (maturity) in 5 years? The buyer wants to have an interest rate profit of 8% compounded semiannually.

Reference no: EM13851319

Questions Cloud

Integral to survival of capitalism as economic system : In about 500 words, From a geographical standpoint, why is SPACE so integral to the survival of Capitalism as an economic system?

When traveling to other countries for business : When traveling to other countries for business, it is important to know the male/female roles in each country. Not knowing these roles could cause problems in discussions and negotiations.

Probability of returning a shipment : Suppose you are receiving a large shipment of Gizmos. The manufacturing standards provide that 1% of Gizmos turn out defective. You randomly select a sample of n = 25 from each lot and return the shipment if more than 2 are found defective. The proba..

Discuss symptoms of autism spectrum disorder : Discuss symptoms of autism spectrum disorder in light of normal development in the following domains: language, cognition, emotion, and social. In other words, what is noticeably abnormal in children with autism spectrum disorder versus what you m..

Dividend compounded semiannually with face value : How much do you have to pay for a bond rate that pays 6% dividend compounded semiannually, with a face value of $5,000 that is going to be paid (maturity) in 5 years? The buyer wants to have an interest rate profit of 8% compounded semiannually.

Government increases both taxes and government purchases : Suppose the government increases both taxes and government purchases by $10,000. Assuming that the marginal propensity to consume is 0.75, calculate the change in private saving, government saving, and total saving. Then draw a graph of the loan able..

Equal increases in aggregate demand and aggregate supply : Other things equal, what effect will each of the following have on the equilibrium price level and the level of real output? Equal increases in aggregate demand and aggregate supply. An increase in aggregate demand in the steep portion of the aggrega..

Effects of equilibrium price level and level of real output : Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects of the equilibrium price level and the level of real output.

What are the four supply factors of economic growth : What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve. What are the four supply factors of economic growth? What is the d..

User Account

All Pages