A $20,000-face-value strip bond was purchased for $10,045.94, providing the investor with a rate of return of
Question:
A $20,000-face-value strip bond was purchased for $10,045.94, providing the investor with a rate of return of 4.2% compounded semiannually. To the nearest day, how long before the maturity date was the bond purchased? Assume that each half-year is exactly 182 days long.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
Each compounding period is 6 months or a year The full periods represent 332 16 ...View the full answer
Answered By
Amit Kumar
I am a student at IIT Kanpur , which is one of the prestigious colleges in INDIA.
Cleared JEE Advance in 2017.I am a flexible teacher because I understand that all students learn in different ways and at different paces. When teaching, I make sure that every student has a grasp of the subject before moving on.
I will help student to get the basic understanding clear. I believe friendly behavior with student can help both the student and the teacher.
I love science and my students do the same.
4.90+
44+ Reviews
166+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
An investor paid $6315.29 to purchase a $10,000 face value strip bond for her RRSP. At this price the investment will provide a return of 3.47% compounded semiannually. How long (to the nearest day)...
-
An investor paid $4271.17 to purchase a $10,000 face value strip bond for her RRSP. At this price the investment will provide a return of 6.47% compounded semiannually. How long (to the nearest day)...
-
Multiply Choice 1. When a common stock offering requires registration under the Securities Act of 1933: (a) The registration statement is automatically effective when filed with the SEC. (b) The...
-
According to a study conducted by the Gallup organization, the proportion of Americans who are afraid to y is 0.10. A random sample of 1100 Americans results in 121 indicating that they are afraid to...
-
Carbon dioxide (CO2) enters a nozzle at 35 psia, 1400oF, 250 ft/s and exits at 12 psia, 1200oF. Assuming the nozzle to be adiabatic and the surroundings to be at 14.7 psia and 65oF. Determine: (a)...
-
Qs What problems do operational data pose for BI systems?
-
This exercise demonstrates the equivalence between the intertemporal and static budget constraints in the presence of labor income when the investor can borrow against the income, as asserted in...
-
This example well illustrates the trend to using project management to do everything in organizations that used to be done in other ways. Can everything be better executed using project management?...
-
X Company presented the following comparative financial informat 2019 Items 1,600,000 Net sales 22,100 Other Income 1,622,100 Total Revenues Cost and expenses 740,000 Cost of sold 90,000 Research and...
-
A Global private bank is aggressively looking to leverage technology to improve customer experience and reduce operational costs. Over the last few years, it has tied up with at least five startups...
-
Mutual funds with assets in precious metals have displayed high price volatility in recent years. For example, the Sentry Precious Metals Growth Fund had annual returns in successive years from 2010...
-
The population of Canada grew from 24,820,000 in 1981 to 35,851,800 in 2015. What was the overall compound annual rate of growth in our population during the period?
-
Brian and Jane are planning to work in partnership as software consultants. Write a note to explain their responsibilities for running the business and producing accounting information about the...
-
On July 1, 2021, P Company borrowed P160,000 to purchase 80 percent of the outstanding common stock of S Company. This loan, carrying a 10 percent annual rate, is payable in 8 annual installments...
-
Case Analysis Strategic leaders, being at the highest level of an organization, are responsible for charting its path to success. They visualize an ideal picture of their enterprise in a futuristic...
-
3 Refrigerant-134a enters a adiabatic compressor at 100 kPa and -24C with a flow rate of 1.300 m/min and leaves at 800 kPa and 60C. Determine the mass flow rate of R-134a and the power input to the...
-
The following trial balance of Bramble Traveler Corporation does not balance. Bramble Traveler Corporation Trial Balance April 30, 2025 Debit Credit Cash $6,221 Accounts Receivable 5,350 Supplies...
-
From this analysis, we can see than the actual number of unit produced was actually less than the forecasted, yet the actual revenue gain from were greater than the forecasted one. This situation...
-
Modify Binary_tree to take a parameter (or parameters) to indicate what kind of line to use to connect the nodes (e.g., an arrow pointing down or a red arrow pointing up). Note how this exercise and...
-
Refer to the table to answer the following questions. Year Nominal GDP (in billions) Total Federal Spending (in billions) Real GDP (in billions) Real Federal Spending (in billions) 2000 9,817 578...
-
a. Canadian National Railway (CNR): 10%, Enbridge (ENB): 40%, Loblaw (L): 40%, Manulife Financial (MFC): 10% b. CNR: 50%, ENB: 30%, L: 10%, MFC: 10% c. CNR: 70%, ENB: 10%, L: 10%, MFC: 10% d. Which...
-
Refer to Exercise 7.85. Compute the correlation matrix of the returns of the four banks. Briefly describe what the correlations tell you. In exercise 7.85 An analyst recommends that you invest in a...
-
a. Bank of Montreal (BMO): 25%, Magna International (MG): 25%, Power (POW): 25%, Rogers Communication (RCL.B): 25% b. BMO: 20%, MG: 60%, POW: 10%, RCL.B: 10% c. BMO: 10%, MG: 20%, POW: 30%, RCL.B:...
-
You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company...
-
Brief Exercise 10-6 Flint Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building...
-
"faithful respresentation" is the overriding principle that should be followed in ones prepaparation of IFRS-based financial statement. what is it? explain it fully quoting IAS. how this this...
Study smarter with the SolutionInn App