If the price of a U.S. government bond is $50 and the owner of the bond is
Question:
If the price of a U.S. government bond is $50 and the owner of the bond is entitled to $2.50 income each year, then the interest rate on the bond is ____.
A. 0.2 percent
B. 5 percent
C. 10 percent
D. 20 percent
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
Answer B The interest ...View the full answer
Answered By
Benard Ndini Mwendwa
I am a graduate from Kenya. I managed to score one of the highest levels in my BS. I have experience in academic writing since I have been working as a freelancer in most of my time. I am willing to help other students attain better grades in their academic portfolio. Thank you.
4.90+
107+ Reviews
240+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
It is April 7, 2017. The quoted price of a U.S. government bond with a 6% per annum coupon (paid semiannually) is 120-00. The bond matures on July 27, 2033. What is the cash price? How does your...
-
Multiple Choice Questions: 1. If the Fed sells a U.S. government bond from a member of the public, a. The banking system has more reserves, and the money supply tends to grow. b. The banking system...
-
Suppose a U.S. government bond promises to pay $1,000 five years from now. If the interest rate on 5-year government bonds is 5.5%, how much is the bond worth today?
-
Austin Limited is trying to determine the value of its ending inventory as of February 28, 2019, the companys year-end. The following transactions occurred, and the accountant asked your help in...
-
What are the Miller indices for the plane shown in the following cubic unit cell? (A) (201) (B) (1 ( 1 / 2) (C) (10 1/2) (D) (102) -/2
-
Now look at Fowler's work on design pattems. Look at the organizational pattern created by Fowler as a way to document the structure of a solution so that its use by others is optimized. and at the...
-
The Bonferroni-adjusted P-value is always greater than the uncorrected P-value. In Exercises 5 and 6, determine whether the statement is true or false. If the statement is false, rewrite it as a true...
-
During your observation of the November 30, 20X0, physical inventory of Jay Company, you note the following unusual items: a. Electric motors in finished goods storeroom not tagged. Upon inquiry, you...
-
Lilac Designs provides consulting services related to home decoration. Lilac Designs provides customers with recommendations for a full range of home dcor, including window treatments, carpet and...
-
1. The university rules allow an F grade to be overridden by any pass grade (A, B, C, D). Now, create a view that lists information about all fail grades that have not been overridden (the view...
-
Financial capital is the ___________. A. money used to buy stocks and bonds B. money used to buy physical capital C. funds that savers supply and buyers of physical capital borrow D. money in the bank
-
In the loanable funds market, an increase in ________. A. the real interest rate increases the demand for loanable funds B. expected profit increases the demand for loanable funds C. expected profit...
-
What are the necessary steps for performing a Bonferroni post hoc comparison?
-
A researcher believes that 48% of people who grew up as the only child have an IQ score over 100. However, unknown to the researcher, this figure is actually 50% , which is the same as in the general...
-
Suppose Tree City Sporting Goods Company reported the following data at July 31, 2021, with amounts in thousands: (Click the icon to view the data.) Use these data to prepare Tree City Sporting Goods...
-
Question 11 Amelie considers investing in one stock and one bond. The following table lists the returns on the two assets in three different scenarios and the probability of each scenario occurring....
-
What is the total cash collection for April? Q1- the following is information of Royal Company for the quarter ending June 30th Sales budgets for the next four months are: April May June Budget sales...
-
On the payroll for Runners were listed 21 part-time workers at $7,200 each, 7 full-time general labourers at $12,400 each, 5 managers at $22,400 each, 2 vice-presidents at $42,500 each, and 1...
-
What are the current trends in financial institutions?
-
Find a polar equation for the curve represented by the given Cartesian equation. 4y 2 = x
-
a. How would the budget deficit change in 2015 and 2016 if the Bank of Canada moved interest rates up? b. How would the budget deficit change in 2015 and 2016 if the Bank of Canadas monetary policy...
-
How was Canadas budget deficit of 2013 influenced by the Bank of Canadas low interest rate policy? In the 1980s, it was Argentina, Mexico, and the Philippines that struggled with unsustainable debt...
-
How does a government get funds to cover a budget deficit? How does financing a budget deficit affect the central banks monetary policy? In the 1980s, it was Argentina, Mexico, and the Philippines...
-
The following information was available from the inventory records of Swifty Company for January: Units Unit Cost Total Cost Balance at January 1 8800 $9.79 $86152 Purchases: January 6 6100 10.32...
-
On January 1, Year 1, Beatie Company borrowed $210,000 cash from Central Bank by issuing a five-year, 7 percent note. The principal and interest are to be paid by making annual payments in the amount...
-
In the month of November, Kingbird Storage Company Inc. wrote checks in the amount of $53300. In December, checks in the amount of $72910 were written. In November, $48776 of these checks were...
Study smarter with the SolutionInn App