Find the Maturity Date and Proceeds

question 49

Multiple Choice

Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $3,500 Discount rate:
Date made: July 15
Time: 180 days
Maturity date: Proceeds:

• A)Maturity date: January 9 Proceeds: $3,329.38
• B)Maturity date: January 9 Proceeds: $3,670.63
• C)Maturity date: January 11 Proceeds: $3,670.63
• D)Maturity date: January 11 Proceeds: $3,329.38

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Definitions:

CAPM

Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.

Risk-to-reward Ratio

A measure used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Constant

A fixed value that does not change in mathematical equations or in the context of specific calculations.

Security Market Line

A line that represents the relationship between the expected return of a market security and its risk, as measured by beta.