Part 1 (1 point) See Hint You purchased an IBM bond with a face value of $10,000 and an interest rate of 10%, Suddenly, the market interest rate changes, which raises your bond price by $600. What was the original price of the bond? (Compute this answer to two decimal places.) Part 2 (1 point) See Hint What is the new market interest rate? (Compute this answer to two decimal places.) SOF 14 QUESTIONS COMPLETED SUBMIT ANSWER Part 1 (1 point) See Hint Suppose that Aaron, the owner of Jack Brown's Burger Bar, wants to open a new restaurant. To open the restaurant, he will need to raise $250,000. Suppose Aaron decides to sell one-year bonds with a $10,000 face value. If the price of the bond is $9000, the interest rate on the bond is %. Give your answer to two decimal places. Part 2 (1 point) See Hint Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 5%, the price of these new bonds is s Give your answer to two decimal places. 90F 14 QUESTIONS COMPLETED SUBMIT ANSWER Part 1 (1 point) See Hint A municipal bond that matures in one year has a $5,000 face value and is currently priced at $4,650.00. Calculate the Interest rate for this bond to two decimals. Part 2 (1 point) See Hint Suppose that inflation is exactly 2.00%. Calculate the real interest rate to two decimals. See Hint Say the Dow Jones Industrial Average was 300 in October 1929 and 100 in October 1931. How much of a percentage decrease did it experience over that period? Give your answer to one decimal. % Part 1 (1 point) See Hint You purchased an IBM bond with a face value of $10,000 and an interest rate of 10%, Suddenly, the market interest rate changes, which raises your bond price by $600. What was the original price of the bond? (Compute this answer to two decimal places.) Part 2 (1 point) See Hint What is the new market interest rate? (Compute this answer to two decimal places.) SOF 14 QUESTIONS COMPLETED SUBMIT ANSWER Part 1 (1 point) See Hint Suppose that Aaron, the owner of Jack Brown's Burger Bar, wants to open a new restaurant. To open the restaurant, he will need to raise $250,000. Suppose Aaron decides to sell one-year bonds with a $10,000 face value. If the price of the bond is $9000, the interest rate on the bond is %. Give your answer to two decimal places. Part 2 (1 point) See Hint Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 5%, the price of these new bonds is s Give your answer to two decimal places. 90F 14 QUESTIONS COMPLETED SUBMIT ANSWER Part 1 (1 point) See Hint A municipal bond that matures in one year has a $5,000 face value and is currently priced at $4,650.00. Calculate the Interest rate for this bond to two decimals. Part 2 (1 point) See Hint Suppose that inflation is exactly 2.00%. Calculate the real interest rate to two decimals. See Hint Say the Dow Jones Industrial Average was 300 in October 1929 and 100 in October 1931. How much of a percentage decrease did it experience over that period? Give your answer to one decimal. %
