Challenge problem. Each holiday season, Michael received a U.S. savings bond from his grandmother. Michael eventually received twelve savings bonds as shown in the following table: The bonds vary in their rates of interest and their face values. Assume today i December 31, 2011. What is the value of this portfolio of U.S. savings bonds? On what date does each of the individual bonds reach its face value or maturity date (note that the price is half the face value)? Estimate to the nearest month and year for each bond. Note: The bonds continue earning interest past their maturity dates. SILE $94.28 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/1999? $40.02 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/2000? $ 42.75 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/2001? $67.19 (Round to the nearest cent.) What is the total value of this portfolio of the U.S. savings bonds today on 12/31/2011? $856.16 (Round to the nearest cent.) What is the number of years to maturity for the bond issued on 12/31/1990? years (Round to two decimal places.)
Challenge problem. Each holiday season, Michael received a U.S. savings bond from his grandmother. Michael eventually received twelve savings bonds as shown in the following table: The bonds vary in their rates of interest and their face values. Assume today i December 31, 2011. What is the value of this portfolio of U.S. savings bonds? On what date does each of the individual bonds reach its face value or maturity date (note that the price is half the face value)? Estimate to the nearest month and year for each bond. Note: The bonds continue earning interest past their maturity dates. SILE $94.28 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/1999? $40.02 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/2000? $ 42.75 (Round to the nearest cent.) What is the current value of the bond that was issued on 12/31/2001? $67.19 (Round to the nearest cent.) What is the total value of this portfolio of the U.S. savings bonds today on 12/31/2011? $856.16 (Round to the nearest cent.) What is the number of years to maturity for the bond issued on 12/31/1990? years (Round to two decimal places.)
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 2EP
Related questions
Question
![(Click on the following icon in order to copy its contents into a spreadsheet.)
Issue Date
12/31/1990
12/31/1991
12/31/1992
12/31/1993
12/31/1994
12/31/1995
12/31/1996
12/31/1997
12/31/1998
12/31/1999
12/31/2000
12/31/2001
TOTAL
Price
$25
$50
$25
$25
$50
$50
$50
$25
$50
$25
$25
$50
$450
Face Value
$50
$100
$50
$50
$100
$100
$100
$50
$100
$50
$50
$100
Print
Interest Rate
Done
5.0%
3.0%
4.0%
4.0%
4.0%
4.0%
6.0%
3.0%
5.0%
4.0%
5.0%
3.0%
Maturity Date
(MM/YYYY)
?
?
?
?
?
?
?
?
?
?
?
?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F344f3f5d-4adb-4500-8c10-71b08ca0477a%2Fc0ea4fc3-de14-4907-9452-65fe0450c6e6%2Fdt4nv6e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(Click on the following icon in order to copy its contents into a spreadsheet.)
Issue Date
12/31/1990
12/31/1991
12/31/1992
12/31/1993
12/31/1994
12/31/1995
12/31/1996
12/31/1997
12/31/1998
12/31/1999
12/31/2000
12/31/2001
TOTAL
Price
$25
$50
$25
$25
$50
$50
$50
$25
$50
$25
$25
$50
$450
Face Value
$50
$100
$50
$50
$100
$100
$100
$50
$100
$50
$50
$100
Print
Interest Rate
Done
5.0%
3.0%
4.0%
4.0%
4.0%
4.0%
6.0%
3.0%
5.0%
4.0%
5.0%
3.0%
Maturity Date
(MM/YYYY)
?
?
?
?
?
?
?
?
?
?
?
?
![Challenge problem. Each holiday season, Michael received a U.S. savings bond from his grandmother. Michael eventually received
twelve savings bonds as shown in the following table: The bonds vary in their rates of interest and their face values. Assume today is
December 31, 2011. What is the value of this portfolio of U.S. savings bonds? On what date does each of the individual bonds reach its
face value or maturity date (note that the price is half the face value)? Estimate to the nearest month and year for each bond. Note: The
bonds continue earning interest past their maturity dates.
SON
$94.28 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/1999?
$ 40.02 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/2000?
$42.75 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/2001?
$67.19 (Round to the nearest cent.)
What is the total value of this portfolio of the U.S. savings bonds today on 12/31/2011?
$ 856.16 (Round to the nearest cent.)
What is the number of years to maturity for the bond issued on 12/31/1990?
years (Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F344f3f5d-4adb-4500-8c10-71b08ca0477a%2Fc0ea4fc3-de14-4907-9452-65fe0450c6e6%2Fs1qa1h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Challenge problem. Each holiday season, Michael received a U.S. savings bond from his grandmother. Michael eventually received
twelve savings bonds as shown in the following table: The bonds vary in their rates of interest and their face values. Assume today is
December 31, 2011. What is the value of this portfolio of U.S. savings bonds? On what date does each of the individual bonds reach its
face value or maturity date (note that the price is half the face value)? Estimate to the nearest month and year for each bond. Note: The
bonds continue earning interest past their maturity dates.
SON
$94.28 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/1999?
$ 40.02 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/2000?
$42.75 (Round to the nearest cent.)
What is the current value of the bond that was issued on 12/31/2001?
$67.19 (Round to the nearest cent.)
What is the total value of this portfolio of the U.S. savings bonds today on 12/31/2011?
$ 856.16 (Round to the nearest cent.)
What is the number of years to maturity for the bond issued on 12/31/1990?
years (Round to two decimal places.)
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