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Business Finance questions

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2 credit cards both state an APR of 10%.  FNB’s card charges 0.8333% compounded monthly.  FUB's card charges 5% compounded semiannually (twice a year).  Given these APR’s, what are the effective annual rates charged by these two credit cards?

  1. Lycan Inc. has 7.5% coupon bonds on the market that have 18 years left to maturity and a face value of $1,000.  The bonds make annual payments.  If the yield to maturity on these bonds is 4.25%, what is the current bond price?
Apr 1st, 2015

FNB card effective annual rate 10.471%
FUB card effective annual rate 10.250%  
Coupon 7.50%  
n 18 years
FV $1,000  
Yield 4.25%  
Current price $565.79 (use price function in excel)

Apr 1st, 2015

For some reason this is popping up and I cannot get rid of it.  I thought I accepted your answer

May 1st, 2015

Thank you

Jul 16th, 2015

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