1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
REY [17]
3 years ago
12

What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 6 years if the appropriate disco

unt rate is 4%.
Mathematics
1 answer:
Zolol [24]3 years ago
5 0

Answer:4

Step-by-step explanation:

A zero-coupon bond  doesn’t make any payments. Instead, investors purchase the zero-coupon bond for less than its face value, and when the bond matures, they receive the face value.

To figure the price you should pay for a zero-coupon bond, you'll follow these steps:

Divide your required rate of return by 100 to convert it to a decimal.

Add 1 to the required rate of return as a decimal.

Raise the result to the power of the number of years until the bond matures.

Divide the face value of the bond to calculate the price to pay for the zero-coupon bond to achieve your desired rate of return.

First, divide 4 percent by 100 to get 0.04. Second, add 1 to 0.04 to get 1.04. Third, raise 1.04 to the sixth power to get 1.2653. Lastly, divide the face value of $1,000 by 1.2653 to find that the price to pay for the zero-coupon bond is $790,32.

You might be interested in
Lim x -4 sqrt x+20 - sqrt 12-x x^ 2 +3x-4 =
belka [17]
hey jay sorry for the phone number but i did not respond yet but i will text you back when you leave the office
8 0
3 years ago
Read 2 more answers
2x+9−5x=12 i dont under stand how to get the answer
Alona [7]
Answer:
The answer is x=-1
6 0
3 years ago
Write an equation to match each graph.<br><br> I already tried y=[x] that didn’t work
UkoKoshka [18]

Answer:

y=|x|

Step-by-step explanation:

We know

general modulus function passes through origin as |0| is 0

And it's symmetric on both sides of y axis .

As it's not one -one function

Means

  • f(-1)=|-1|=1
  • f(1)=|1|=1

So the graph is y=|x|

6 0
2 years ago
Read 2 more answers
An artist purchased 24 high quality canvases to be used for painting this fall. Each week she will allow herself to use three of
Nadusha1986 [10]

Answer:

<u><em>canvases over weeks </em></u>

<u><em> </em></u>

<u><em>Step-by-step explanation: </em></u>

<u><em> </em></u>

<u><em>Given: </em></u>

<u><em> </em></u>

<u><em>w(h) represents how many hours per week </em></u>

<u><em> </em></u>

<u><em>c(t) approximates how many canvases she paints per hour </em></u>

<u><em> </em></u>

<u><em>In function composition, if we have two function f(x) and g(x) then </em></u>

<u><em> </em></u>

<u><em>(f.g)(x) or f(g(x)) means first apply g(), then apply f() i.e. applying function f to the results of function g. </em></u>

<u><em> </em></u>

<u><em>Now we have c(w(h)), this means first we apply w(h) which will give us hours per week and then we'll apply function 'c' on the results of 'w' (that is number of hours for weeks painted). As result we'll get number of canvas </em></u>per week!

8 0
3 years ago
Consider the sphere enclosed by the cylinder. If the diameter of the sphere is 12 cm, what is the volume of the cylinder? A) 36π
kogti [31]
To find the volume of a cylinder , you will use the formula
V = Bh, where B is the area of the circular base.
Pi x r^2 x h
pi x 6^2 x 12
V = 432
The volume of the cylinder is 432pi cm³.
6 0
3 years ago
Read 2 more answers
Other questions:
  • I don’t know how to do it
    6·1 answer
  • Which equation is equivalent to I = prt?
    11·1 answer
  • Orignal price $30 markdown 26%​
    12·1 answer
  • Sales at LL Boutique decreased 10% this month compared to last month. If sales this month were $103,581, what were the sales (in
    10·2 answers
  • If triangle ABC = triangle EDF where the coordinates of A(-1, 1), B(2,4), and C(3,1), what is the
    11·1 answer
  • I need help on how to start
    7·1 answer
  • 3 out of 10 children played outside, 4 out of 11 children played outside
    7·2 answers
  • What expression can be used to determine the cost of the buying and pounds of almonds $4.95 per pound and a half pounds of flour
    15·1 answer
  • Write the expanded form of the expression y(0.5 + 5)
    11·1 answer
  • Lowest to highest <br> 7.2 ; 2.07 ; 7.02 ; 27.2 ; 0.27
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!