posted a question
Finding I
. Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?

a. 4.37%
b. 4.86%
c. 5.40%
d. 6.00%
e. 6.60%

Finding N
. Janice has $5,000 invested in a bank that pays 3.8% annually. How long will it take for her funds to triple?

a. 23.99
b. 25.26
c. 26.58
d. 27.98
e. 29.46

Finding N
. Bob has $2,500 invested in a bank that pays 4% annually. How long will it take for his funds to double?

a. 14.39
b. 15.15
c. 15.95
d. 16.79
e. 17.67

Finding N
. Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 9.0% per year. If that growth rate were maintained, how many years would it take for Thomson’s EPS to triple?

a. 9.29
b. 10.33
c. 11.47
d. 12.75
e. 14.02

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    Chapter 5 Selected Questions and Problems – Week 5 Fin 324
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