The WSJ lists a bond as Acme 9s13 and the price as 89.875. If your required rate of return is 10%, would you buy one of these bonds in 2001?

Answer :

Yes

Explanation :

A bond in finance may be defined as an instrument of the indebtedness of a bond. It is a fixed income instrument that shows a loan by investors. Bonds may be in mutual funds or in private funding.

Here in the question it is given that WSJ is a company and it listed a bond on the market as Acme 9s13.

The price of the bond 89.875

The rate of return rate will be = 10%

So I will buy the bond of WSJ in the year 2001 as it will give a return of $ 931.00

5x + 3y = - 4

step-by-step explanation:

the equation of a line in standard form is

ax + by = c ( a is a positive integer and b, c are integers )

express the line first of all in slope- intercept form

y = mx + c ( m is the slope and c the y-intercept )

to calculate m use the gradient formula

m = ( y₂ - y₁ ) / ( x₂ - x₁ )

with (x₁, y₁ ) = (7, - 3) and (x₂, y₂ ) = (4, - 8)

m = = -

y = - x + c ← is the partial equation

to find c substitute either of the 2 points into the partial equation

using (4, - 8 ), then

- 8 = - + c ⇒ c = -

y = - x - ← in slope-intercept form

multiply all terms by 3 to eliminate the fractions

3y = - 5x - 4 ( add 5x to both sides )

5x + 3y = - 4 ← in standard form