subject
Business, 04.01.2021 20:20 stodd9503

An investor borrows an amount at an annual effective interest rate of 5% and will repay all interest and principal in a lump sum at the end of 10 years. She uses the amount borrowed to purchase a 1000 par value 10-year bond with 8% semiannual coupons bought to yield 6% convertible semiannually. All coupon payments are reinvested at a nominal rate of 4% convertible semiannually. Calculate the net gain to the investor at the end of 10 years after the loan is repaid. a. 116
b.106
c. 111
d. 101

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 18:30
Which of these is an example of innovation?
Answers: 2
question
Business, 22.06.2019 19:30
Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery
Answers: 3
question
Business, 23.06.2019 01:20
Which of the following is true about presentation methods for providing training? audiovisual techniques are most effective when they are used alone. mobile technologies include training methods such as on-the-job training, simulations, business games and case studies, behavior modeling, interactive video, and web-based training that require the trainee to be actively involved in learning. the typical users for teleconferencing include employees who are part of a workforce that spends most of its time traveling, visiting customers or various company locations and has limited time available to spend in traditional training activities. webcasting involves classroom instructions that are provided online through live broadcasts. classroom instruction is no longer a popular training method because of new technologies such as interactive video and computer-assisted instruction.
Answers: 1
question
Business, 23.06.2019 01:20
Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?
Answers: 2
You know the right answer?
An investor borrows an amount at an annual effective interest rate of 5% and will repay all interest...
Questions
question
Physics, 15.11.2021 03:20
question
Mathematics, 15.11.2021 03:20
question
Biology, 15.11.2021 03:20
question
Mathematics, 15.11.2021 03:30
question
Mathematics, 15.11.2021 03:30
question
Mathematics, 15.11.2021 03:30
Questions on the website: 13722361