Robinhood offers zero-commission trading

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1. A $1,000 10% ten-year bond has semiannual coupons. It is purchased new at $880 and is redeemable at $1020. Find the coupon amount and the effective yield rate per coupon period.

Please show all steps and please do not use Excel.

2. Robinhood offers zero-commission trading. Is this crazy? How can Robinhood make profits? What do you think of the prospect of its business model? (2) On 2/1, the biggest three stocks by market cap, Alphabet, Amazon, and Apple all reported earnings for 2017 Q4. Following the earnings reports, whose share price rose? Whose share price declined? How do you explain the price reactions?

 

Reference no: EM131962425

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