Answer:
$885.65
Explanation:
Missing word <em>"You are considering the purchase of a $1,000 par value bond with an 6.5% coupon rate (with interest paid semiannually) that matures in 12 years. If the bond is priced to provide a required return of 8%, what is the bond’s current price?"</em>
<em />
Rate = 8% / 2
Nper = 12 * 2 = 24
Pmt = 1,000 * 6.5% / 2 = 32.5
FV = 1,000
Bond's current price = PV(rate, nper, pmt, fv)
Bond's current price = PV(8%/2, 24. 32.5, 1000)
Bond's current price = $885.65
So, the bond's current price is $885.65
Answer:
Its total cash flow at the end of year 3 is:
$792.
Explanation:
a) Data and Calculations:
Maturity of bond = 5 years
Face value = $1,000
Coupon rate = 8%
Amortization schedule for each year = 20% (100/5)
Bond’s Periodic Cash flows:
End of year 1 = $200 + $80 interest ($1,000 * 8%) = $280
End of year 2 = $200 + $64 interest ($800 * 8%) = $264
End of year 3 = $200 + $48 interest ($600 * 8%) = $248
Total cash flow at the end of year 3 = $792
Answer:
The answer is B
Explanation:
GDP is no affected by Scott's production of the jewelry box.
The answer to this question is C.<span>compare the reduced welfare of buyers and sellers to the amount of revenue the government raises.
If the amount of welfare increasing proportionately with the percentage of the increase in government budget then we could conclude that the tax is pretty much used for the economic well being of the people and vice versa.</span>
