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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 327 Weeks Ago, 5 Days Ago |
| Questions Answered: | 12843 |
| Tutorials Posted: | 12834 |
MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Question 1
Say that the interest rate is 8%. If you invest $200 today and then another $300 in exactly one year, what is the total future value of these
investments two years from today?
$515.5
$557.28
$601.11
$665.28
Question 2
A coupon bond pays $400 at the end of each year for 3 years, and at the maturity date in 3 years, it also makes a face value payout of $500. If the
interest rate is 3% then this bond has a present value of
$1,589
$1,666.6
$1,713.3
$1,799.2
Question 3
An investor buys a coupon bond and holds it for exactly one year and then sells it in a secondary market prior to maturity. The investor buys it
for $4,000, sells it one year later for $4,300 and receives a coupon payment of $500. Then the one-year rate of return from holding this bond is
0.09
0.12
0.17
0.2 Question 4
An investor buys a bond for $5,500 that pays out $7,000 in 3 years. This bond has a yield to maturity of (choose closest value)
7.8%
8.37%
9.11%
11%
Question 5
You just found out that you have $838.86 in a savings account. Your uncle opened the account in your name exactly 6 years ago, and deposited
$X in the account. Then he put in another $85 three years after opening the account. Other than $X and the $85, there were no other deposits. If
the interest rate for the past 6 years has been 8%, what is X? (choose the closest number)
$393.95
$411.2
$461.15
$502.22
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