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2 years ago

Bond Valuation with Semiannual Payments

1 answer:

5 0

If Renfro Rentals has issued bonds that have an 8% coupon rate, payable semiannually. The price of the bonds is: $1,039.11.

<h3>Price of the bonds</h3>

We would be making use of financial calculator to find or determine the price of the bonds (Present value) by inputting the below data:

N represent Number of years = 12 x 2 = 24

I represent Interest rate= 7.5 % / 2 =3.75 %

PMT represent Periodic payment= (8% x 1000) / 2 = $40

FV represent Future value= $1,000

PV represent Present value=?

Hence;

PV (Present value) = $1,039.11

Therefore if Renfro Rentals has issued bonds that have an 8% coupon rate ,payable semiannually. The price of the bonds is: $1,039.11.

Learn more about price of the bonds or present value here: brainly.com/question/13990294

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Step-by-step explanation:

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3 years ago

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3 years ago

n a Gallop poll of 1012 randomly selected adults, 9% said that cloning of humans should be allowed. We are going to use a .05 si

Vanyuwa [196]

Answer:0.1446

Step-by-step explanation:

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As per given , the appropriate set of hypothesis would be :-

$H_0: p\geq0.10\\\\ H_a: p$

Since $H_a$ is left-tailed and sample size is large(n=1012) , so we perform left-tailed z-test.

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3 years ago

A school baseball team earned $3416.90 from selling 5716 tickets to their game. If grandstand tickets sold for 65 cents each and

Nataly [62]

Let g and b represent the numbers of grandstand and bleacher tickets sold.
.. g + b = 5716 . . . . . . . . . total number of tickets sold
.. 65g +40b = 341690 . . value of tickets sold

Using the first equation
.. g = 5716 -b
Sustituting into the second equation
.. 65(5716 -b) +40b = 341690
.. -25b + 371540 = 341690 . . . . . collect terms
.. -25b = -29850 . . . . . . . . . . . . . . subtract 371540
.. b = 1194 . . . . . . . . . . . . . . . . . . . . divide by -25

1194 bleacher tickets were sold.

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4 years ago

Iodine-125 has a daily decay rate of about 1%. How many milligrams of a 500 mg sample will remain after 300 days? Round the answ

Amanda [17]

So.. in this case, the starting amount is the 500mg sample... and the rate of decay, negative rate, is 1%, and at the time, the elapsed days is 0, to t = 0, P = 400

$\bf \qquad \textit{Amount for Exponential change}\\\\
A=P(1\pm r)^t\qquad 
\begin{cases}
A=\textit{accumulated amount}\\
P=\textit{starting amount}\to &500\\
r=rate\to 1\%\to \frac{1}{100}\to &0.01\\
t=\textit{elapsed period}\to &300\\
\end{cases}
\\\\\\
A=500(1-0.01)^{300}$

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3 years ago

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