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Alex_Xolod [135]
3 years ago
7

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third yea

r of the bond (8 years left to maturity) is 8.6%. What is the new price of the bond

Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer:

$880.31

Explanation:

For computing the new price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Assuming Future value = $1,000

Rate of interest = 8.6%  ÷ 2 = 4.3%

NPER = 8 years  × 2 =

PMT = $1,000 × 6.5% ÷ 2  = $32.5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $880.31

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b. Based on the information given, the indirect costs that's allocated to the units will be:

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Check attachment for further explanation.

6 0
2 years ago
4. What is a power machine's "throw"?
RideAnS [48]

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Answer:

I think its B

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Suppose that you are opening a new music store in your town. How would the government affect your business?
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