1. You have an opportunity to buy a $1,000 bond which matures in 10 years. The bond pays $30 every six months. The current market interest is 8%. What is the most you would be willing to pay for this bond?
2. In January 2000, Harold bought 100 shares of Country Homes for $37.50 per share. He sold them in January 2010 for a total of $9,715.02. Calculate Harold's annual rate of return.
3. Samuel invested in gold U.S coins ten years ago, paying $216.53 for one-ounce gold coins. He could sell these coins for $734 today. What was his annual rate of return for this investment?
Please could you explain answers and what formulas you used...present value etc© BrainMass Inc. brainmass.com June 3, 2020, 8:41 pm ad1c9bdddf
The expert examines bonds and share for opportunities.