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23 January, 20:19

In 2008, when the U. S. automobile industry was struggling, the price of Ford Motor Company bonds rose. If originally a one-year Ford bond had a face value of $10,000 and a price of $9,500, what was the interest rate

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  1. 23 January, 20:45
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    5.26% was the interest rate

    Explanation:

    The rate of return on the one-year bond is 5.26%.

    The formulation framework for the abstract description of data blocks is omnipresent in R. The design matrix multiplication for the modeling function are always generated (e. g. lm). Note that the process of formulation determines the columns to be used in the concept matrix and the lines to preserve.

    This is calculated using the formula R = (face value - initial price) / initial price.

    = 10,000 - 9500 / 9500

    = 5.26%
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