Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a savvy investor paid $6,000 for a 20-year $10,000

A savvy investor paid $6,000 for a 20-year $10,000 mortgage bond that had a bond...

80.2K

Verified Solution

Question

Finance

image

A savvy investor paid $6,000 for a 20-year $10,000 mortgage bond that had a bond interest rate of 8% per year, payable quarterly. Three years after he purchased the bond, market interest rates went down, so the bond increased in value. If the investor sold the bond for $11,000 three years after he bought it, what rate of return did the investor make per quarter and per year (nominal)? The rate of return per quarter is %. The rate of return per year is

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Signals from analytical method give a mean blank of 0.203 mV and standard deviation of 0.052...

Mechanical Engineering
1.2K views

Design for Sustainability (DFS) is a DFX emphasis on sustainability, meaning that the primary design emphasis...

General Management
1.2K views

define productivity and explain the types of productivity. what are the factors affecting productivity?

Physics
1.2K views

11 An electric dipole consists of charges 2e and 2e separated by 0 78 nm...

Basic Math
1.2K views

Find two numbers whose sum is 23 and whose product is a maximum The two...

Accounting
1.2K views

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect...

Accounting
1.2K views

The following data are accumulated by Patterson Inc. in evaluating two competing capital investment proposals:...

Accounting
1.2K views

amount of standard deduction in 2020 of divorce with 6 dependent

Accounting
1.2K views

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets The budget director of Gourmet...

Accounting
1.2K views

An indirect department cost is: Select one: a. A cost assigned directly to a department...

Accounting
1.2K views

Seannie operates a business that produces $120.000 of income belore any amounts are paid to...

Finance
1.2K views

Pick up an organization in any industry of your choice. Prepare and present a simple...