James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond paid 2.1

Question:

James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond paid 2.1 percent annual interest. Four years later he sold the bond for $1,040.

1. What is the annual interest amount for the bond?

2. What is the total interest Mr. McCulloch earned during the four-year period?

3. What is the total return for Mr. McCulloch’s bond investment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Personal Finance

ISBN: 9781264101597

14th Edition

Authors: Jack Kapoor, Les Dlabay, Robert Hughes, Melissa Hart

See More Books

Question Posted: Nov 12, 2023 02:48 AM

See More Questions

James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond paid 3.125 percent annual interest. Four years later, he sold the bond for $1,040. a. What is the annual...
James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond paid 2.70 percent annual interest. Four years later, he sold the bond for $1,040. a. What is the annual...
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
Visit www.guidestar.org and obtain the Form 990 for a local not-for-profit organization. a. Examine Part VIII of the 990 to determine gross receipts of the organization. b. Examine Part IX of the...
Peter hires Alice as an agent to sell a piece of property he owns. The price is to be at least $30,000. Alice discovers that the fair market value of Peters property is actually at least $45,000 and...
Small Co., a sole proprietorship based in Truro, has two employees, Jim Roy and Janice Alter. The owner of Small Co. is Bert Ryan. During the current pay period, Jim has worked 48 hours and Janice...
From which relationships can you currently draw strength?
Some chargeback systems can lead to negative tensions between IS and business leaders. Why do you think this happens, and what might an IS leader do to alleviate them?
1.) On 6/01 a company uses FIFO and had 50 @($5) units on hand at the beginning of the period. It purchased 500 @($7) more units on 6/15. On 6/16, it sold 400 units. The cost of the goods sold would...
For this assignment, we are going to change our point of view. You are now working for Woolly, and you are preparing Woolly's response to Mammoth's RFP to support the transition of the 12 staff from...
Calculate the purchase price for a 52-week, $1,000 Treasury bill with a stated interest rate of 1.10 percent.
Sandra Waterman purchased a 52-week, $1,000 T-bill issued by the U.S. Treasury. The purchase price was $984. 1. What is the amount of the discount? 2. What is the amount Ms. Waterman will receive...
The chapter pointed out that whenever money is used to purchase capital, interest costs are incurred. Sometimes those costs are explicitlike when Alex borrowed the money from the bankand sometimes...
Use the following table to answer questions and ll]. The number of hot dogs sold by 12 randomly selected hot dogs vendors in Central Park on July 4 is as follows: 142 97 105 76 90 83 123 115 92 94 73...
Can you please describe (in about a paragraph) a situation (preferably but not necessarily in business) that requires a decision necessitating a decision tree with at least two branches, each branch...
Data: Sodium Systolic98 14799 14996 175109 14591 135107 14987 121110 170102 163103 141117 14992 13590 12793 132113 18199 152114 164103 14496 148111 180128 18392 13284 135102 141103 147117 16789...
Gary Tuttle has Citiwide Insurance with 100% coverage after a $25.00 copay on office visits. His services today include an office visit ($62.00), urinalysis with differential ($65.00) and a Treadmill...
The Elgin Golf Dutton Golf Merger Elgin Golf Inc. has been in merger talks with Dutton Golf Company for the past six months. After several rounds of negotiations, the offer under discussion is a...
For 9a-d, graph the equations on your calculator. a. y = x2 b. y = x3 c. y = x4 d. y = x5 e. How do the graphs compare? How do they contrast? What points (if any) do they have in common? f. Predict...
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
What is the responsibility of the insurance company that sells you a policy? What is the relationship between insurance company claims and premiums paid by policyholders?
What is the role of insurance underwriters? What is the role of insurance agents? Define the two different types of insurance agents.
Describe the two components of liability coverage in an auto insurance policy.
Which one of the following includes only financial budgets? i) cash budget and the operating budget ii) sales budget and the budgeted balance sheet iii) cash budget and the sales budget iiii)...
You are the audit team assign to audit the unaudited set of financial statements for XYZ Company Ltd. Prepare written report to highlight the audit procedures to be used to substantiate/confirm the...
Island Novelties, Inc., of Palau makes two products--Hawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows: Selling price...

James McCulloch purchased a 30-year U.S. Treasury bond four years ago for $1,000. The bond paid 2.1

Question:

Step by Step Answer:

To calculate the annual interest amount for the bond the total interest earned over the fouryear per...View the full answer

Personal Finance

Students also viewed these Business questions