Given the current yield to maturity of the bond, the price of the bond five years for now is $883.10.
<h3>What is the price of the bond five years from now?</h3>
The first step is to determine the yield to maturity of the bond. The yield to maturity is the return on the bond if the bond is held to matuity.
Yield to matuity can be determined using a financial calculator:
Cash flow in year 0 = -875
Cash flow each year from year 1 to 25 = 85
Cash flow in year 25 = $1000
Yield to matuity = 9.86%
Future price of the bond: (coupon x future price factor) + [FV / (1 + YTM)^n)]
Future price factor = [1 - (1/YTM)^n] / YTM
= [1 - 1/0.0986^20] 0.0986 = 8.595555
[85 x 8.595555 ] + 152.478323 = $883.10
To learn more about yield to maturity, please check: brainly.com/question/26484024
Step-by-step explanation:
by which method defination method, prime factorization or division method
The slope of the current line is -2/7. To find the slope of the line perpendicular to it, find the negative reciprocal of the slope. So it would be 7/2. The y intercept or the b would remain the same so the equation would be y=7/2x+8. Hope this helps.
Answer:
C
Step-by-step explanation:
The radius is 4 making the diameter 16 you need the other side since in half so that leaves you with answer C...16
