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Write the formula which is used to calculate the annual effective yield?
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- What is Annual Effective Yield?How much would you pay for a 4%, 10-year bond with a par (and redemption) value of $10,000 that pays a dividend semiannually if you wanted to earn an 8% return.As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) AmountFinanced InterestRate Termof Loan(years) MonthlyPI AnnualPropertyTax AnnualInsurance MonthlyPITI $260,000 9.50% 25 $ $6,573 $2,126 $
- Gabe purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would be his return per half year period?What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 5.5%? The bond has a face value of$1,000 and it matures in 10 years. Use the price determined from the first yield, 6.5%, as the base in the percentage calculationQ) General Electric recently sold $1000 bonds maturing in 30 years with an annual yield of 4.125%. After how much time could they be sold for twice their original price? Give your answer in years and months. Solve this Handwriting or typed not in excel. And correctly exolain
- What are annual effective yields?If I want to invest my money, how long will it take (in months) $6000 to earn $120 interest (simple) at 6%?A trader buys a $1600, 12% quarterly bond for $1800, the bond matures in 3 years and pays interest compounded quarterly, what is the rate of return on the bond compounded quarterly?
- After learning about finances in grade eleven, you decide to put money where your mouth is and at the end of every month invest $100 into the stock market for the next 48 years. Assuming the market returns 8% per annum, compounded monthly, how much will you have after 48 years?A bond's face value is the amount the issuer provides to the bondholder, once maturity is reached. A bond's face value is $81，843 and it mature after 8 years. If the interest rate is 9.82%, how much would you pay (at most) to purchase this bond?Let's say that you invest $8000 at 3.1 percent annual interest for 6 years. What will its value be? Carefully follow all numeric directions. Round intermediate steps to four decimal places and final answers to two.
