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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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Imagine that you invest $100,000 in an account that pays 5.9% annual interest compounded monthly. What will your balance be at t
kodGreya [7K]
The compound interest formula is: A= P(1+ \frac{r}{n} ) ^{nt}
Where:
A is the amount you will have.
P is the money you are investing.
r: is the interest rate (in decimals)
n: number of times the interest is compounded per year
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The first thing is converting the rate from percentage to decimal: 
\frac{5.9}{100} = 0.059

Since the interest is compounded every month and a year has 12 months n=12.

Now we can replace the values in our formula:
A=100000(1+ \frac{0.059}{12} ) ^{(12)(18)}

We can simplify the exponents to get:
A=100000(1+ \frac{0.059}{12} ) ^{216}

Finally, we can use our calculator to get 288463.33

After 18 your balance in your bank account will be $288463.33
4 0
3 years ago
Hex Industries reports the following information for May: Sales $ 990,000 Fixed cost of goods sold 118,000 Variable cost of good
Semmy [17]

The gross profit of Hex Industries for May under absorption costing is $604,000.

<h3>What is absorption costing?</h3>

Under absorption costing, the total or full costs of manufacturing or (variable and fixed) cost of goods sold are included when determining the gross profit.

<h3>Data and Calculations:</h3>

Sales $ 990,000

Variable cost of goods sold 268,000

Fixed cost of goods sold 118,000

Total cost of goods sold = $386,000

Gross profit = $604,000 ($990,000 - $386,000)

Fixed selling and administrative costs 118,000

Variable selling and administrative costs 143,000

Total period costs = $261,000 ($118,000 + $143,000)

Net income = $343,000 ($604,000 - $261,000)

Thus, the gross profit of Hex Industries for May under the absorption costing method is $604,000.

Learn more about the absorption costing method at brainly.com/question/14609187

#SPJ1

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For my retirement and my family future
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