Question
1) A. (Related to Checkpoint? 9.1) ?(Floating-rate loans)The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the? firm's working
1) A. (Related to Checkpoint? 9.1) ?(Floating-rate loans)The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the? firm's working capital. The loan called for a floating rate that was 29 basis points (0.29 percent) over an index based on LIBOR. In? addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.22 percent and a minimum of 1.76 percent. Calculate the rate of interest for weeks 2 through 10.
Date
LIBOR
Week 1 1.95%
Week 2 1.63%
Week 3 1.48%
Week 4 1.36%
Week 5 1.63%
Week 6 1.67%
Week 7 1.66%
Week 8 1.92%
Week 9 1.87%
The rate of interest for week 2 is _____% ?(Round to two decimal places.)
B) (Bond valuation) Doisneau 25?-year bonds have an annual coupon interest of 13 ?percent, make interest payments on a semiannual? basis, and have a ?$1000 par value.What is the price of the? bonds?
The price of the bonds is ?$________ ? (Round to the nearest? cent.)
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