Question

Shelly is looking into bonds she can purchase. She is looking at a $6,000 fixed-rate, 10-year bond at 6% and a $6,000 zero coupon bond with a redemption value of $8,000. Compare the potential earnings for the two bonds.


Select the best answer from the choices provided.
The fixed-rate bond would earn more.
The zero coupon bond would earn more.
Both bonds earn the same amount.
The yields of both bonds are variable.

Answer 1

@jim_thompson5910

Answer 2

First off, how much is Shelly earning for the zero coupon bond

Answer 3

$6,000

Answer 4

in just interest alone

Answer 5

@jim_thompson5910 please help... which is the answer

Answer 6

how much interest is Shelly earning for the zero coupon bond

Answer 7

@jim_thompson5910 none

Answer 8

she earns interest

Answer 9

@jim_thompson5910 you giving me hint , i see what the option is

Answer 10

@jim_thompson5910 so theanswe is B?

Answer 11

@jim_thompson5910

Answer 12

@the answer is B?

Answer 13

@jim_thompson5910

Answer 14

$6,000 zero coupon bond with a redemption value of $8,000.

Answer 15

she earns $_____

Answer 16

@jim_thompson5910 $2,000

Answer 17

$6,000 fixed-rate, 10-year bond at 6%

Answer 18

$3,600

Answer 19

so each year, she earns

6000*0.06 = 360 dollars

Over 10 years, she earns 10*360 = 3600 dollars

good

Answer 20

its A?

Answer 21

So you tell me which is better. yep the fixed rate is better

Answer 22

Thanks