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9966 [12]
1 year ago
9

a bond has a face value of $1,000, an annual coupon rate of 7 percent, yield to maturity of 10 percent, and 20 years to maturity

. the bond's duration is
Business
1 answer:
rewona [7]1 year ago
5 0

The bond that has a face value of $1,000 has a duration of 10 years.

<h3>What is a bond?</h3>

A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.

To learn more about bond, visit:

brainly.com/question/28362992

#SPJ4

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A. sound tracker company retires its delivery equipment, which cost $41,000. accumulated depreciation is also $41,000 on this de
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The amount of the salvage may be calculated using various equations. We are given that the sound tracker is retired about some time and this was initially bought at $41,000. However, we are given that the accumulated depreciation is also equal to $41,000. 

Since the initial payment is similar to the accumulated depreciation hence, the salvage value is zero. 
7 0
3 years ago
Clear Waters Snorkeling Equipment Company has had major losses for the last few years. U.S. Representative Snow has introduced a
Maslowich

Answer:

C. II only

Explanation:

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Tình hình kinh tế và triển vọng phát triển của việt nam
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3 years ago
dia wants to improve her ____. her creative writing teacher suggest that she read genres of books that she usually finds dull​
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4 0
3 years ago
The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value
faust18 [17]

Answer:

The correct answer is "43,000".

Explanation:

The given values are:

Carrying amount,

= $4060000

Face value,

= $3900000

Now,

For June 30, 2021, the Interest expense will be:

= 4060000\times 10 \ percent\times \frac{1}{2}

= 203,000

For June 30, 2021, the cash interest will be:

= 3900000\times 8 \ percent\times \frac{1}{2}

= 156,000

Now,

On June 30, 2021, the premium's amortization will be:

= Interest expense - Cash interest

= 203,000-156,000

= 47,000

On retirement, the cash paid will be:

= 3900000\times 104 \ percent

= 4,056,000

On June 30, 2021, the less carrying amount will be:

= Carrying amount - amortization

= 4060000-47000

= 4,013,000

Then,

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2 years ago
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