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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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