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Arlecino [84]
2 years ago
14

A 9%, $1000 bond matures in 16 years, pays interest semi-annually, and has a yield to maturity of 9.86%. What is the current mar

ket price?
Business
1 answer:
Mama L [17]2 years ago
8 0

PMT = 1000*.09 = 90/2 = 45

Nper = 16*2 = 32

Rate = 9.86%/2 = 4.93%

FV =1000

PV =?

Price of Bond = PV(rate,per,pet,fv) = PV(4.93%,32,45,1000) = 931.48

Answer is 931.48

In mathematics, a rate is the ratio of two related quantities expressed in different units. If the denominator of a ratio is expressed as a single unit of one of these quantities, and that quantity is assumed to be systematically changing (that is, it is the independent variable), then the numerator of the ratio is the corresponding rate of change. represents Other (Dependent) Variables.

Rate is a special relationship in which the two terms have different units. For example, if a 12 oz can of corn costs 69 cents, the price is 69 cents for 12 oz. It is not a ratio of two equal units like this: B. Shirt. This is the ratio of his two unequal units, cents, and ounces.

Learn more about Rate here: brainly.com/question/1115815

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If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then p
lesantik [10]

Answer:

a. rises but real GDP per person falls

Explanation:

Gross domestic product is the total monetary value of output that is produced by an economy in a given period.

GDP increases as the income increases. This is because people have more money to spend on goods and services.

So if people are retiring they will earn pension that will be spent. This increases productivity of the economy.

However since the number of people working is reducing there will be a reduction in real GDP per person. Only few people are producing and output will be allocated to a large population many of whom are not working.

6 0
4 years ago
An example of a capital budgeting decision is deciding:
pantera1 [17]

An example of a capital budgeting decision is deciding whether or not to purchase a new machine for the production line.

Capital budgeting decisions are frequently related to choosing to adopt a brand new mission or now not that expands a firm's current operations. commencing a new save area, for instance, might be one such choice.

Capital budgeting's major purpose is to perceive tasks that produce cash flows that exceed the value of the assignment for a company.

Capital budgeting is the method a commercial enterprise undertakes to evaluate capacity for essential projects or investments. creation of a brand new plant or a massive investment in an outdoor assignment are examples of tasks that would require capital budgeting before they may be authorized or rejected.

Learn more about capital budgeting here: brainly.com/question/24301148

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5 0
2 years ago
What is frim defion please help
Margaret [11]
Having a solid structure or surface. Does this help?

8 0
3 years ago
Identify the impact on the accounting equation of the following transactions. 1. Purchased 36-month insurance policy for cash. 2
Y_Kistochka [10]

Answer:

Insurance reduces one asset and increases another

Purchase of supplies on account increases liabilities and increases asset

Receipt of unpaid utility bill increases liability and reduces capital

Payment of accrued utility bill reduces asset as well as liability

Explanation:

The purchase of 36-month insurance brings about increase in asset,insurance prepayment  and reduction in another asset,cash.

The purchase of supplies on account brings about increase in liability,accrued liabilities or other accounts payable as well as increase in asset,inventory of supplies.

The receipt of utility bill yet to be paid,increases liability,accrued expenses and reduces capital,since an increase in expenses reduces retained earnings which is an integral part of capital

Payment of utility reduces asset,cash and at the same time reduces liability,accrued expenses

7 0
3 years ago
The company has 15,000 machine hours available each period, and there is unlimited demand for each product. what is the largest
FrozenT [24]
The answer in this question is $135,000.Solution to get the answer is For X the company earns $24/3 = $8/MH; for Y the company earns $18/2 = $9/MH; hence, the company would want to specialize in producing Y. The company can make 15,000/2 = 7,500 units of Y, earning a total CM of 7,500 x $18 = $135,000. (This can also be calculated as $9 x 15,000.)
7 0
3 years ago
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