1) Joe Smith purchased a 20 year corporate bond with a 12% coupon rate (payments made semiannually) and par value of $1000 for $1300. Six months later, after receiving a coupon payment, Joe sold the bond. At the time of the sale, the market interest rate for this type of bond was 10%. What was Joe's rate of return?
2) A bank wishes to obtain a return on equity of 15% next year. Its interest earning assets are $100 million, its equity is $12 million, and its tax rate is 30%. The bank has no loan losses, other income, or other expenses. However, next year it will have an annual depreciation of $3 million. What must the bank's net interest margin be in order to meet its goal?
I went to community college 6 years ago, but withdrew. While there I was awarded 800 dollars in a Federal Pell Grant. When I checking my balance though the Government Website (FASFA), it says I still have 675 dollars to be disbursed. Can still receive this as a refund? I canít understand this. Please help me. Thanks a lot.