What is the current rate of interest

Assignment Help Microeconomics
Reference no: EM131923177

Problem

Taking a bond with no fixed redemption date paying interest at the rate of 5 per cent pa and a nominal price of .C100-.

(a) What is the current rate of interest if the bond has a current market value of £110?

(b) What would be your answer if the cur-rent market price of the bond was £90?

(c) What would be the market price of the bond if the current market rate of interest is 5 per cent?

Reference no: EM131923177

Questions Cloud

Magnitude of the magnetic field inside the solenoid : If the cross-sectional radius of the solenoid were decreased by a factor of 2, what is the magnitude of the magnetic field inside the solenoid?
How do you prove the given problem : You are faced with the last days of a computer conversion and you are receiving calls that people have paid their bills, yet were not being credited.
How the fed lowers and raises the federal funds rate : How does financial intermediation often provide a better alternative to direct financing between surplus and deficit units?
Magnitude and direction of the total force on the wire : Determine the magnitude and direction of the total force on the wire.
What is the current rate of interest : What is the current rate of interest if the bond has a current market value of £110? What would be your answer if the cur-rent market price of bond was £90?
How can a seasonal forecast of daily sales : How can a seasonal forecast of daily sales for some weeks help you as an owner or manager to perhaps plan short term labor scheduling or purchases of materials.
Provide critical analysis of the conceptual challenges : Provide critical analysis of the conceptual and theoretical challenges related to a selected healthcare issue in a wider global context using theories.
Estimate of the breeland ltd special order : Case Study - Ace Fertilizer Company: Ethical Cost Allocations and Price Determination. How was her cost estimate and/or price determination flawed
Average speed in the mks system of units : A passenger jet flies from one airport to another 1,253 miles away in 2.3 h. Find its average speed in the mks system of units.

Reviews

Write a Review

Microeconomics Questions & Answers

  1bank z 10 rr assetsliabilities rr k200000deposits

1. bank z 10 rr assetsliabilities rr k200000deposits k2000000 er k1800000 you are given the above balance sheet for

  Perfectly competitive firm exhibits resource efficiency

The perfectly competitive firm exhibits resource a locative efficiency (P = MC), but the single-price monopolist does not. What is the reason for this difference? Explain very briefly with good examples.

  Executives deal with a tremendous amount of dail stress

Executives deal with a tremendous amount of dail stress dealing with politics in organizations - yet they do not suffer from job burn out. Some argue that their political skills save them. Research and find an article that discusses the specifi..

  What is the effective interest rate and the apr

Some lenders charge an up-front fee on a loan, which is added to what the borrower owes. This is typically described as "points".

  What is the estimated coef?cient of adjustment

In studying the farm demand for tractors, Griliches used the following model*: T * t = α X1,t-1β1 X2,t-1 β2  - What is the estimated coef?cient of adjustment?

  What are the employment effects of minimum wages

Through which channels does a binding minimum wage affect employment? Illustrate this effect with a diagram. According to recent research what are the employment effects of minimum wages?

  Suppose the price elasticity of demand for stocks

Suppose the price elasticity of demand for stocks is1.5. This means that for every 10 percent increase in stock prices, the quantity demanded will decline by 15 percent. Does this price elasticity make sense? Explain

  Define the budget deficit is of tremendous concern

The budget deficit is of tremendous concern and all law makers agree that some measures should be taken to reduce it. However, The Republicans see the issue as a spending problem, while the Democrats see it as a revenue problem.

  Do all these equilibrium maximize overall welfare

When a small car ("Economy"-"E") collides with a larger car ("SUV"-"S") passengers in the E are put at greater risk. However, when an E collides with another E damags are minimal, whereas when an SUV collides with another SUV the damages are higher.

  Wheat is just high enough to cover his costs of production

felix is a wheat farmer who has two fields he can use to grow wheat. the first field is right next to his house and the

  Determine the reduction in disposable income

Virtually all purchases of consumer nondurable goods do not involve extended credit terms. Yet that component of GDP exhibits a very marked cyclical pattern.

  How many spaghetti dinners should the firm make each day

How many spaghetti dinners should the firm make each day and what if the firm has avoidable fixed costs of $1562.50?

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