Questions from Business Mathematics


Q: An investor is prepared to buy short-term promissory notes at

An investor is prepared to buy short-term promissory notes at a price that will provide him with a return on investment of 12%. What amount would he pay on August 9 for a 120-day note dated July 18 fo...

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Q: Under what circumstance can you realize a capital gain on a bond

Under what circumstance can you realize a capital gain on a bond investment?

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = May 19 Term = 120 days Legal due date = ?

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Q: Assuming that the bond issuer does not default on any payments,

Assuming that the bond issuer does not default on any payments, is it possible to lose money on a bond investment? Discuss briefly.

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Q: Solve the equations. 2 x 1.03 7 +

Solve the equations. 2 x 1.03 7 + x + x ( 1.03 ) 10 = $1000 + $2000 1.03 4

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = June 30 Term = 90 days Legal due date = ?

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Q: On a recent interest payment date, a bond’s price exceeded its

On a recent interest payment date, a bond’s price exceeded its face value. If the prevailing market rate of return does not change thereafter, will the bond’s premium be different on later interest pa...

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = July 6 Term = ? Legal due date = Oct 17

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Q: If you are firmly convinced that prevailing interest rates will decline,

If you are firmly convinced that prevailing interest rates will decline, how should you change the relative weighting of short-term and long-term bonds in your bond portfolio?

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Q: Calculate the missing values for the promissory notes described. Issue

Calculate the missing values for the promissory notes described. Issue date = Nov 14 Term = ? Legal due date = Jan 31

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