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GrogVix [38]
1 year ago
11

Suppose a u. S. Treasury bond will pay $4,475 five years from now. If the going interest rate on 5-year treasury bonds is 4. 25%

, how much is the bond worth today?.
Business
1 answer:
umka21 [38]1 year ago
5 0

The calculated worth of the given U.S. Treasury bond today is  mathematically given as $3634.23.

<h3>What does a Treasury bond do?</h3>

Treasury bonds (sometimes known as T-bonds) are fixed-rate debt instruments issued by the US government, with maturities ranging from 10 to 30 years. T-bonds offer semi-annual interest payments up until maturity, when the owner is given the bond's face value.

<h3>Do Treasury Bonds pay interest monthly?</h3>

Interest on my savings bonds is paid monthly. The bond's interest rate is applied to a fresh principal amount every six months because interest is compounded semi-annually. The total of the former principal and the interest accrued over the preceding six months makes up the new principal.

<h3>Briefing:</h3>

The present worth of the U.S. Treasury bond is given by:

Future value/(1 + interest rate)(no. of years)

4.475/(1 + 4.25)⁵
2.500/(1.0425)⁵

3634.23

Present worth is  =$3634.23

To know more about Treasury bond visit:

brainly.com/question/1246006

#SPJ4

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Answer:

the subject of Federal Open Market Committee decisions is as below:

level of interest rates and growth of the money supply

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The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by
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Answer:

B. 2.8 years

Explanation:

Initial investment = -120,000+ 8,000 = -112,000

Yr 1 cash inflow = 40,000, hence net CF = 40,000-112,000 = -72,000

Yr 2 cash inflow = 40,000, hence net CF = 40,000- 72,000 = -32,000

Yr 3 cash inflow = 40,000, hence net CF = 40,000-32,000 = 12,000

Payback period = last year with negative net CF + (absolute net CF that year/ total CF the following year)

= 2 + (32,000/40,000)

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<h3>The relationship between free trade and wages</h3>

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Trade will increase the average pay level in an economy because it increases the amount that an economy can produce by allowing businesses and workers to take use of their comparative advantages.

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Learn more about trade from;

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4 0
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Answer:

c. $3,150

Explanation:

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