Which of the following represents the equation that would be used to determine the yield to maturity of a three-year fixed payment loan of $1400 which has payments of $500 per year?
A) $1400 = $500/(1+i) + $500/(1+i)2 + $500/(1+i)3
B) $1400 = $500/(1+i)3
C) i = (1400-500)/1400
D) $1400 = $500/(1+i) + $500/(1+i)2 + $500(1+i)3 + 1400/(1+i)3
A
You might also like to view...
By the early 1700s, slavery had become concentrated in the southern colonies. Economic factors that explain this demographic trend include all of the following except
a. the South's use of the primogeniture system. b. economies of scale available in the production of the South's primary crops. c. a climate that allowed for year-round agricultural production. d. early laws that prohibited slavery in most of the New England and Middle colonies.
The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent:
Refer to the above information. The maximum amount by which this commercial banking system can expand the supply of money by lending is:
A. $120,000 billion
B. $300,000 billion
C. $600,000 billion
D. $900,000 billion