Yield Maturity
Not what you're looking for?
You are considering purchasing some bonds to diversify your investment portfolio.You have $100,000 to invest. You notice that your local city is issuing some bonds to fund the local elementary school building. They are offering $1000 par value bonds for a rate of 6%. These bonds will mature in 20 years. They are selling currently for $465. Given the following yield of maturity, are they a good buy?
a - 4%
b - 6%
c - 8%
After you do the original calculation, you realize that the bonds are your results now?
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to consider whether investing in the local elementary school building bond is a good buy.
Solution Preview
See the attached file.
Yield Maturity
You are considering purchasing some bonds to diversify your investment portfolio. You have $100,000 to invest. You notice that your local city is issuing some bonds to fund the local elementary school building. They are offering $1000 par value bonds for a rate of 6%. These bonds will mature in 20 years. They are selling currently for $465. Given the following yield of maturity, are they a good buy?
a - 4%
b - 6%
c - 8%
After you do the original calculation, you realize that the bonds are your results ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.