You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth $5,000. It is exactly 8 years after you purchased the bond and you can sell the bond today for $3,300. If you hold the bond until it matures, what annual rate of return will you earn from today?
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You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth $5,000. It is exactly 8 years after you purchased the bond and you can sell the bond today for $3,300. If you hold the bond until it matures, what annual rate of return will you earn from today?
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- You are considering purchasing a bond. The bond will pay you $100 at the end of each year for 20 years. At the end of the 20th year, the bond will also pay you back its $1,000 face value. Assuming a 4% discount rate, how much is this bond worth today? Round to the nearest dollar.You have decided to buy a perpetual bond. The bond makes one payment at the end of every year forever and has an interest rate of 7%. If the bond initially costs $5000, what is the payment every year?You are considering purchasing a bond. The bond will pay you $100 at the end of each year for three years. At the end of the third year, the bond will also pay you back its $1,000 face value. Assuming a 10% discount rate, how much is this bond worth today? Round to the nearest dollar. I am having trouble calculating how much this bond is worth today. Thank you!
- You buy a bond that pays annual interest payments of 7% of the bond’s face value of $1000. You initially pay $950 for the bond. You receive an annual interest payment after one year, then sell the bond for $880. What is your total rate of return on the investment, expressed as a percentage of the purchase price?You are thinking about buying a savings bond. The bond costs $50 today and will mature in 9 years with a value of $100. What annual interest rate will the bond earn? The bond will earn an annual rate of _____%. (Round to two decimal places.)you purchases a $1000 face value bond for $950. you held the bond for 10 years until it doubles in face value. what rate of return did you earn over the 10 years. Assume yearly compounding
- If you are considering the purchase of a bond that pays $850 per year forever, and the rate of interest you want to earn is 11% per year, how much money should you pay for the bond?You are thinking about buying a savings bond. The bond costs $70 today and will mature in 10 years with a value of $155. What annual interest rate will the bond earn? The bond will earn (Round to two decimal places.)You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like to earn at least a 2.2% annual rate of simple interest on your investment, what is the largest amount the you should pay for the bond? Round your answer to the nearest cent.
- Suppose that the interest rate is 10%. You are considering purchasing a bond that pays $25,000$25,000 in 6 years6 years . What is the net present value of the bond? value: $You are thinking about buying a savings bond. The bond costs $52 today and will mature in 14 years with a value of $104. What annual interest rate will the bond earn? The bond will earn an annual rate of %. (Round to two decimal places.) CIf you want to receive $500 every three months for 10 years by investing in a bond that has a face value of $10,000 and a yield interest rate of 8% annually, what would be the value of this bond?