In March 2015, Daniela Motor Financing (DMF), offered some
securities for sale to the public. Under the terms of the deal, DMF
promised to repay the owner of one of these securities $1,000 in
March 2035, but investors would receive nothing until then.
Investors paid DMF $440 for each of these securities; so they gave
up $440 in March 2015, for the promise of a $1,000 payment 20 years
later.
a. Assuming you purchased the bond for $440, what
rate of return would you earn if you held the bond for 20 years
until it matured with a value $1,000? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Rate of return
%
b. Suppose under the terms of the bond you could
redeem the bond in 2025. DMF agreed to pay an annual interest rate
of 1.5 percent until that date. How much would the bond be worth at
that time? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
Bond value
$
c. In 2025, instead of cashing in the bond for its
then current value, you decide to hold the bond until it matures in
2035. What annual rate of return will you earn over the last 10
years? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Rate of return
%
In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under...
In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $5,000 in March 2045, but investors would receive nothing until then. Investors paid DMF $1,790 for each of these securities; so they gave up $1,790 in March 2015, for the promise of a $5,000 payment 30 years later. a. Assuming you purchased the bond for $1,790, what rate...
In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $2,000 in March 2055, but investors would receive nothing until then. Investors paid DMF $610 for each of these securities; so they gave up $610 in March 2015, for the promise of a $2,000 payment 40 years later. a. Assuming you purchased the bond for $610, what...
Please help. Due soon :) In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $1,000 in March 2055, but investors would receive nothing until then. Investors paid DMF $350 for each of these securities; so they gave up $350 in March 2015, for the promise of a $1,000 payment 40 years later. a. Assuming you purchased the...
In March 2018, Daniela Motor Financing (DMF). offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $2.000 in March 2043, but investors would receive nothing until then. Investors paid DMF $730 for each of these securities, so they gave up $730 in March 2018, for the promise of a $2.000 payment 25 years later. a. Assuming you purchased the bond for $730, what rate...
In March 2018. Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $2.000 in March 2043, but investors would receive nothing until then. Investors paid DMF $730 for each of these securities, so they gave up $730 in March 2018, for the promise of a $2,000 payment 25 years later. ded a. Assuming you purchased the bond for $730, what...
In March 2018, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $5,000 in March 2048, but investors would receive nothing until then. Investors paid DMF $850 for each of these securities; so they gave up $850 in March 2018, for the promise of a $5,000 payment 30 years later. a. Assuming you purchased the bond for $850, what rate...
In March 2012, Daniela motor financing, offered some securities for sale to the public. Under the terms of the deal, DMF promise to repay the owner of one of the securities $500 in March 2037, but investors would receive nothing until then. Investors PDF to earn $50 for each of the securities; so they gave up $250 in March 2012, for the promise of a $500 payment 25 years later. c. In 2022, instead of cashing in the van for...
In March 2012, Daniela motor financing, offered some securities for sale to the public. Under the terms of the deal, DMF promise to repay the owner of one of the securities $500 in March of 2037, but investors would receive nothing until then. Investors paid DMF $250 for each of these securities; so they gave up $250 in March 2012, for the promise of a $500 payment 25 years later. Assuming that you purchased the barn for $250, what rate...
In March 2012, Daniela motor financing, offered some securities for sale to the public. Under the terms of the deal, DMF promise to repay the owner of one of these securities $500 in March 2037, but investors would receive nothing until then. And busters paid DMF to her and $50 for each of these securities; so they gave up $250 in March 2012, for the promise of a $500 payment 25 years later. Suppose under the terms of the bond...
In March 2012, Daniela motor financing, offered some security is for sale to the public. Under the terms of the deal, DMF promise to repay the owner of one of the securities $500 in March 2037, but investors would receive nothing until then. Investors PDF Twitter $50 for each of these securities; so they gave up two or $50 in March 2012, for the province a $500 payment 25 years later. b. Suppose under the terms of the bond you...