Ask Question
EngineeringEngineering
15 July, 10:49

A mortgage bond issued by Automation Engineering is for sale for $8,200. The bond has a face value of $10,000 with a coupon rate of 11% per year, payable monthly. What rate of return will be realized if the purchaser holds the bond to maturity 8 years from now

+1
Answers (1)
  1. 15 July, 10:59
    0
    Person will get interest of 11% on 10000 that is 1100 per year or 91.66 per month.

    The future value of this annuity interest at 11% is 14014 after 8 years.

    After 8 years he will also get 10000

    Total amount he will be getting after 8 years

    = 10000 + 14014

    = 24014

    Annualised return with initial investment of 8200 with return of 24014 after 8 years, turns out to be 14.38 %
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A mortgage bond issued by Automation Engineering is for sale for $8,200. The bond has a face value of $10,000 with a coupon rate of 11% per ...” in 📗 Engineering if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Consider a fully developed flow in a circular pipe (negligible entrance effects), how does the convective heat transfer coefficient vary along the flow direction?
Answers (1)
Which type of door consists of thin pieces of wood, glass, or louvers placed within a framed rectangular area? Select one: a. Slab door b. Hollow-core door c. Solid-core door d. Panel door
Answers (2)
Across 2. trees that have leaves 4. remove scratches from wood 8. make pencil marks to locate holes and cutting 10. holds work to table 12. applies finish to wood surface 13. measure length 14. trees that have needles 15.
Answers (1)
The Greek alphabet has 24 distinct lowercase letters. How many bits are needed to be able to encode any single lowercase Greek letter
Answers (1)
Consider two different flows over geometrically similar airfoil shapes, one airfoil being twice the size of the other. The flow over the smaller airfoil has freestream properties given by T[infinity] = 200 K, rho[infinity] = 1.
Answers (1)
New Questions in Engineering
Work done by a system during a process can be considered as a property of the system. a) True b) False
Answers (1)
When the compression process is non-quasi-equilibrium, the molecules before the piston face cannot escape fast enough, forming a high-pressure region in front of the piston. It takes more work to move the piston against this high-pressure region.
Answers (2)
hypothetical A-B alloy of composition 40 wt% B-60 wt% A at some temperature is found to consist of mass fractions of 0.66 and 0.34 for the α and β phases, respectively.
Answers (1)
10. Which of these requires a wheel alignment after replacement? A. Struts B. Shocks C. Both
Answers (2)
What is the definition of diameter pitch?
Answers (1)
Home » Engineering » A mortgage bond issued by Automation Engineering is for sale for $8,200. The bond has a face value of $10,000 with a coupon rate of 11% per year, payable monthly.
Sign Up Forgot Password?