Ask Question
EngineeringEngineering
19 August, 07:45

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

+4
Answers (1)
  1. 19 August, 08:57
    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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
For H2O, determine the specified property at the indicated state. (a) T = 140°C, v = 0.5 m3/kg. Find p, in bar. (b) p = 30 MPa, T = 80°C. Find v, in m3/kg. (c) p = 10 MPa, T = 600°C. Find v, in m3/kg. (d) T = 80°C, x = 0.4.
Answers (1)
If two materials have the same geometry, and different moduli, they MUST have different stiffness. (a) - True (b) False
Answers (1)
What 2 disciplines comprise systems engineering?
Answers (1)
How do I calculate the gear ratio
Answers (1)
A power plant produces electrical power by running water through a turbine. The plant produces 33 kW by utilizing a stream of water that drops 40 m from a reservoir to the turbine and flows at a rate of 150 kg/s.
Answers (1)
New Questions in Engineering
Familiarity with basic fastener properties: For each of the standard fasteners specified informally below, determine the major diameter d, the pitch p, the pitch diameter dp, and the bolt length L.
Answers (1)
The diameter of a cylinder is called the a.) stroke b.) bore c.) principal length d.) radius
Answers (1)
Consider the following grooves, each of width W, that have been machined from a solid block of material. (a) For each case obtain an expression for the view factor of the groove with respect to the surroundings outside the groove.
Answers (1)
What is the last step to the design process? A: Define the problem B: Present solution C: Evaluate a solution D: Develop a solution
Answers (1)
The controller can be considered the brain of closed loop system
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?