You are looking at an investment that has an effective annual
rate of 12.8 percent.
a.
What is the effective semiannual return? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
b.
What is the effective quarterly return? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
c.
What is the effective monthly return? (Do not round
intermediate calculations and...
A bond has an annual 11 percent coupon
rate, an annual interest payment of $110, a maturity of 20 years, a
face value of $1,000, and makes annual payments. It has a yield to
maturity of 8.83 percent. If the price is $1,200, what rate of
return will an investor expect to receive during the next year?
a. -0.33%
b. 8.83%
c. 9.17%
d. 11.00%
None of the above
You are paying an effective annual rate of 18.75 percent on your
credit card. The interest is compounded monthly. What is the annual
percentage rate on this account? APR=
You are offered an investment with a quoted annual interest rate
of 11% with weekly compounding of interest. What is your effective
annual interest rate?
10.71%
11.36%
11.61%
12.00%
11.00%
You are valuing an investment that will pay you nothing the
first two years, $21,000 the third year, $23,000 the fourth year,
$27,000 the fifth year, and $33,000 the sixth year (all payments
are at the end of each year). What is the value of the investment
to you now...
What is the EAR (effective annual rate) of 9.60 percent
compounded quarterly?Group of answer choices9.68 percent9.92 percent9.83 percent9.71 percent9.95 percent
Suppose you want to earn an effective rate of 12% and you are
looking at an account that compounds on a monthly basis. What APR
must they pay? How would you do this on a BAII Plus Calculator?
11. Calculate the effective annual rate on each of the
following loans:
a. A $5,000 loan for two years, 10 percent simple annual
interest, with principal repayment at the end of the second
year
5000(.10)(2) = $1,000
(1,000/2) = 500
500/5000 = 10%
b. A $5,000 loan for two years, 10 percent add-on
interest, paid in 24 equal monthly installments
c. A $5,000 loan to be repaid at the end of two years,
10 percent discount rate