A 20-year maturity corporate bond has a 6.5% coupon rate (the coupons are paid annually). The bond currently sells for $925.50. A bond market analyst forecasts that in 5 years yields on such bonds will be at 7%. You believe that you will be able to reinvest the coupons earned over the next 5 years at a 6% rate of return. What is your expected annual compound rate of return if you plan on selling the bond in 5 years

7.37%

Explanation:

First of we calculate Future value of coupon payments:

Annual Payment= 65

Interest = 6%

Time = 5 years

Present value = 0

Future value = 65 + 65 * (1.06) + 65 * (1.06)^2 + 65 * (1.06)^3 + 65 * (1.06)^4

Future value = 366.41

Now after 5 years the interest rate will become 7%, we will calculate present value of bond after 5 years:

Annual Payment= 65

Interest = 7%

Time = 15 years

Present value = 65/ (1.07) + 65/ (1.07)^2 + + 65/(1.07)^15 + 1000/ (1.07)^15

Present value = 954.46

Total future value = 954.46 + 366.41 = 1,320.87

($925.50) * (1 + r)^5 = $1,320.87

r = 7.37%

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

c is the correct answer.