A bond with face value $10,000 simple interest 6.45% and a term for 12 years is originally bought by Linda. After 33 months, she sells it to Carly for $11,400. Carly then holds on to it for 7 years, eventually selling it to Mike for $14,950. Mike keeps the bond until matures and cashes it in. Put the investors in order based on how much their yearly return was. Order from greatest to least. v Carly's percent profit per year on average v Linda's percent profit per year on average v Moe's percent profit per year on average.
A bond with face value $10,000 simple interest 6.45% and a term for 12 years is originally bought by Linda. After 33 months, she sells it to Carly for $11,400. Carly then holds on to it for 7 years, eventually selling it to Mike for $14,950. Mike keeps the bond until matures and cashes it in. Put the investors in order based on how much their yearly return was. Order from greatest to least. v Carly's percent profit per year on average v Linda's percent profit per year on average v Moe's percent profit per year on average.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A bond with face value $10,000 simple interest 6.45% and a term for 12 years is originally bought by Linda. After 33 months, she sells it to Carly for $11,400.
Carly then holds on to it for 7 years, eventually selling it to Mike for $14,950. Mike keeps the bond until matures and cashes it in. Put the investors in order
based on how much their yearly return was. Order from greatest to least.
Carly's percent profit per year on average
v Linda's percent profit per year on average
v Moe's percent profit per year on average.
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