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ira [324]
3 years ago
5

Suppose a​ seven-year, $ 1 comma 000 bond with a 7.8 % coupon rate and semiannual coupons is trading with a yield to maturity of

6.50 %.If the yield to maturity of the bond rises to 7.20 % ​(APR with semiannual​ compounding), what price will the bond trade​ for?
Business
1 answer:
n200080 [17]3 years ago
4 0

Answer:

The price of the bond is  1,072.19  

Explanation:

The price at which the bond trades for can be computed using the pv formula in excel which tries to discount to present value all the cash inflows receivable from the bond into today's present worth.

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 6.50% divided by 2 since the bond pays interest semi-annually i.e 3.25%

nper is the number of coupon payments the bond would pay which is 7 years multiplied by 2 i.e 14

pmt is the semi-annual interest of the bond which is $1000*7.8%/2=$39

the fv is the face value of the bond of $1000

=-pv(6.5%/2,14,39,1000)=$1,072.19  

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__________ is the amount a business earns after deducting what it spends for salaries and other expenses.
Lana71 [14]

Answer:

profit

Explanation:

profit is a financial return or reward that an entrepreneur aims to achieve to reflect the risk it takes. Profit is also an important signal to other providers of finance to a business. Banks, suppliers and other lenders are more likely to provide finance to a business that can demonstrate that it makes a profit and that it can pay debts as they fall due.

4 0
3 years ago
An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a:
DiKsa [7]
<span>An antique dealer buying items and hoping to sell them for more than he or she paid for them is the very definition of​ a business. A business is economic system that includes commercial and industrial activities through production and sales or exchange of goods and services. 
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3 0
3 years ago
If your monthly expenses total $2,000, you should save at least _______ in an emergency fund before focusing on your investment
alisha [4.7K]
An emergency fund is an account that is used to set aside funds that will be needed in the event of a personal financial dilemma. The size of one emergency fund depends on one's income, dependants and lifestyle. It is recommended that one put aside at least three months worth of expenses.In the question given above, the monthly expenses is $2000.00, so the person has to put away at least $2000 * 3 months, which is equal to $6000.00.
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3 years ago
Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabi
Free_Kalibri [48]

Answer:

Decreased

Explanation:

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If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.

The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.

Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).

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3 years ago
Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of re
ddd [48]

Expected rate of return is defined as the amount of money an individual gets on investment.

<h3>What is expected return?</h3>

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

Therefore, expected rate of return is defined as the amount of money an individual gets on investment.

Learn more on rate of return below

brainly.com/question/16725994

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4 0
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