What amount should be paid for the bond

Assignment Help Macroeconomics
Reference no: EM13329016

Mr.Fritz wishes to purchase a bond having a face value of $1000 and a bond rate of 8% payable annually. The bond has a remaining life of 12 years. In order to earn 10% rate of return on the investment, what amount should be paid for the bond?

Reference no: EM13329016

Questions Cloud

What will be the minimal length of the key : If Encrypt-It-Rite would like to increase the average cracking time to at least 100 years, what will be the minimal length of the key?
What equal annual deposits must be made at : What equal annual deposits must be made at t=2,3,4,5,8,9 and in 10 in order to accumulate $40,000 at t=15 if money is worth 10% compounded annually?
What is the purpose of the diffie-hellman algorithm : Briefly compare and contrast how asymmetric cryptography is used to provide encryption as opposed to how it can be used to provide a digital signature.
Explain a buffer solution contains 0.71 mol of boric acid : A buffer solution contains 0.71 mol of boric acid (H3BO3) and 0.53 mol of sodium dihydrogen borate (NaH2BO3) in 4.00 L. The Ka of boric acid (H3BO3) is Ka = 5.8e-10. What is the pH of the buffer after the addition of 0.50 mol of NaOH
What amount should be paid for the bond : Mr.Fritz wishes to purchase a bond having a face value of $1000 and a bond rate of 8% payable annually. The bond has a remaining life of 12 years. In order to earn 10% rate of return on the investment, what amount should be paid for the bond?
Which will encrypt each users data in a file : Acme Inc. is developing the next generation financial tracking program, and Alice has been given the task of writing the encryption component, which will encrypt each user's data in a file on the hard drive.
What is the minimum number of bonds the firm must sell : The MerryWeather Firm wants to raise $15 million to expand its business. To accomplish this, the firm plans to sell 10-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 4 percent
Find out the molar enthalpy of vaporization : At two temperatures, 85 K and 135 K, the vapor pressures of a certain liquid were found to be 540 Torr and 830 Torr, respectively. From this information, determine the molar enthalpy of vaporization
What will happen to the price of corn oil : If the demand of corm increases do to it use as an altenative engery source, what will happen to supply of corn substitute such as soybean? what will happen to the price of corn oil?

Reviews

Write a Review

Macroeconomics Questions & Answers

  What will happen to the demand of fuel oil

If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?

  Explain how market structure affects market performance

Explain how market structure affects market performance and conduct. Identify three types of government regulation that help to improve market performance and conduct and explain how each regulation achieves its objectives and the economic justifi..

  Utilizing both offer curves and a two by two payoff matrix

Utilizing both offer curves and a two by two payoff matrix, determine the optimal foreign economic policy of a hegemon.

  Illustrate what technology is used to catch them

Illustrate what technology is used to catch them. What's wrong with America's economy, and is America's economic problem short term or long term.

  How much per vehicle should the toll be to cover the cost of

A city engineer knows that she will need 25 million in 3 years to replace toll booths on a toll road in the city. Traffic on the road is estimated to be 20 million vehicles per year.

  Behavior of average product and marginal product

Describe the law of diminishing returns. Then discuss why you agree or disagree with following statements.

  An analytical technique utilized to show best case scenarios

the comparison of the percentage of change in the one variable divided by the percentage change in the other variable. An analytical technique utilized to show best case scenarios of demand and supply curves.

  Explain lotteries have both micro or macro economic effects

Do you think lotteries have both micro and macro economic effects or only micro. how do lotteries change what and for whom goods and services are produced.

  What would happens to hi-techs profits

What would happens to Hi-Tech's profits and the price of books in the short run when Hi-Tech's patents prevents other firms from using the new technology.

  Compute the irr of the project

Based on the relative version of purchasing power parity relationship, calculate the expected appreciation/depreciation in euro and forecast the expected exchange rate for the next 10 years. ii. Develop the timeline of cash flows (years 0 - 10) in ..

  Illustrate what does the fundamental assumption of marginal

Illustrate what does the fundamental assumption of marginal utility theory suggest about the connection between money and happiness.

  Discuss the characteristics of consumer indifference curves

Discuss the characteristics of consumer indifference curves, the role of the consumption-opportunity constraint, and the budget constraint in indifference curve analysis.

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