Disgaea's investments with par of 1,000 finish/mat in 12 yrs and has 6.5% i/y. Market price of bonds is $1,100 and your needed rate is 8%. (a) What is the ERR? (b) Using answer from a), what's the amount/val of the investment?
Disgaea's investments with par of 1,000 finish/mat in 12 yrs and has 6.5% i/y. Market price of bonds is $1,100 and your needed rate is 8%. (a) What is the ERR? (b) Using answer from a), what's the amount/val of the investment?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Disgaea's investments with par of 1,000 finish/mat
in 12 yrs and has 6.5% i/y. Market price of bonds is
$1,100 and your needed rate is 8%.
(a) What is the ERR? (b) Using answer from a),
what's the amount/val of the investment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9cc56646-1dea-40cf-8e27-79a7551092e7%2F6bb34c74-a150-434d-9f7e-69f0fa833b7a%2Fykf8qqp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Disgaea's investments with par of 1,000 finish/mat
in 12 yrs and has 6.5% i/y. Market price of bonds is
$1,100 and your needed rate is 8%.
(a) What is the ERR? (b) Using answer from a),
what's the amount/val of the investment?
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