General finance question General Finance Question No: 128James McCulloch purchased a 30-year U.S. Treasury bond fouryears ago and paid the face value of $3,000. The bond paid3.225 percent annual interest. Four years later he sold the bondfor $3,025.a. What is the annual interest amount for the bond?b. What is the total interest Mr. McCulloch earned during thefour-year period?

Step 1: Define Coupon BondsA coupon bond is a debt security to acquire new borrowing from the…

Answered: General Finance Question No: 128 James…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 18P

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Please please correct answer both a and b Thanks
A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3.5% interest rate each year if he agrees to leave money on deposit for three years. What tax advantage does the Series EE bond offer that is not available with the bank deposit?
Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest rate of 12% over a three-year period. Select one: a. $9 000.00 b. $10 326.00 c. $9 180.00 d. $3 060.00
Please help me with show all calculation thanku
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 18 years. Assume you purchase a bond that costs $100. a. What is the exact rate of return you would earn if you held the bond for 18 years until it doubled in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you purchased the bond for $100 in 2020 at the then current interest rate of .22 percent year, how much would the bond be worth in 2028? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2028, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2038. What annual rate of return will you earn over the last 10 years?
Balance of the question 8. Given that Stephanie’s bank offers an interest rate of 6% per year, what additionalamount should she have deposited as a fixed deposit in the bank so as to accumulatethe amount needed for her investment in stocks and bonds when needed?
What is the monthly payment on a $1.5 million, 20-year mortgage at 7.75 percent interest? Select one: O a. $6,250.00 O b. $12,495.59 O c. $12,314.23 O d. $2,626.73
V Hong took out a $10,000 loan for 73 days and was charged simple interest. The total interest he paid on the loan was $106. As a percentage, what was the annual interest rate of Hong's loan? Assume that there are 365 days in a year, and do not round any intermediate computations. If necessary, refer to the list of financial formulas. 11% Explanation Check X G
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 18 years. Assume you purchase a bond that costs $50. a. What is the exact rate of return you would earn if you held the bond for 18 years until it doubled in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you purchased the bond for $50 in 2020 at the then current interest rate of .28 percent year, how much would the bond be worth in 2030? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2030, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2038. What annual rate of return will you earn over the last 8 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Rate of return b. Bond value c. Rate…
George took out a mortgage loan of $1 120 000 for 12 years at 4.55% p.a. compounding weekly. What is the amount of weekly repayment? Select one: a. $2 330.01 b. $2 178.90 c. $3 450.38 d. $2 109.03
9 Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the beginning of every period compounded monthly, at an interest rate of 5.94%. What is the duration of this annuity? A 5.07 years B 4.98 years 7.16 years 6.22 years
Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 24 years. Assume you purchase a bond that costs $25. a. What is the exact rate of return you would earn if you held the bond for 24 years until it doubled in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you purchased the bond for $25 in 2020 at the then current interest rate of 15 percent year, how much would the bond be worth in 2031? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. In 2031, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2044. What annual rate of return will you earn over the last 13 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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