- Part 1 1 Point See Hint A Municipal Bond That Matures In One Year Has A 5 000 Face Value And Is Currently Priced At 1 (29.1 KiB) Viewed 93 times
- Part 1 1 Point See Hint A Municipal Bond That Matures In One Year Has A 5 000 Face Value And Is Currently Priced At 2 (32.14 KiB) Viewed 93 times
- Part 1 1 Point See Hint A Municipal Bond That Matures In One Year Has A 5 000 Face Value And Is Currently Priced At 3 (37.18 KiB) Viewed 93 times
Part 1 (1 point) See Hint You purchased an IBM bond with a face value of $10,000 and an interest rate of 10%. Suddenly, the market interest rate changes, which raises your bond price by $600. What was the original price of the bond? (Compute this answer to two decimal places.) Part 2 (1 point) See Hint What is the new market interest rate? (Compute this answer to two decimal places.)
Cmokos Part 1 (1 point) See Hint Suppose that Aaron, the owner of Jack Brown's Burger Bar,wants to open a new restaurant. To open the restaurant, he will need to raise $250,000. Suppose Aaron decides to sell one-year bonds with a $10,000 face value. If the price of the bond is $8000, the interest rate on the bond is %. Give your answer to two decimal places. Part 2 (1 point) See Hint Suppose that because of the popularity of Jack Brown's, Aaron decides to open a third restaurant and issues another round of $10,000 one-year bonds. If the interest rate on the bond falls to 20%, the price of these new bonds is I Give your answer to two decimal places. 1st attempt